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1960 Selmarten; 3805; Aurora 1960 Selmarten; 3805; Aurora 2 bed / 1 bath @ $1025 and Tenant only pays electric!

Recently installed carpet, vinyl flooring, and painted (2018) throughout. Walk in closet off master bedroom offering plenty of storage. Ceiling fans in each bedroom and in living room. Balcony overlooks lovely foliage throughout Tall Oaks community. Laundry on site as well as reserved parking. Minutes from I88 expressway, outlet mall, park, and bike trails. No pets per Association. No smoking. FICO score of 625+ and income of $3100/month or more to qualify. Apply at : www.rentapplication.net/chicagoland

NO SECTION 8 VOUCHERS

[contact-form-7]

The post 1960 Selmarten; #3805; Aurora : FOR RENT @ $1025/mo appeared first on Property Management | Property Manager | Realtor | Real Estate | Real Estate Agent by Sean Morrissey.

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Is the Chicagoland Area Keeping Up with the US Average?

Well, from a visual perspective of the Freddie Mac Housing Price Index, the answer is…NO. From 2003 until today, the Chicagoland area has not kept on pace with the National Housing Price Index.

Furthermore, the percentage change on an annual basis has not kept up with the national average from 2014 to 2018.

Are Property Taxes Eating Into the Home Value in the Chicagoland Area? Courtesy of Illinois Policy Institute

Well, this line graph is awfully telling…

According to the Illinois Policy Institute, from 1963 to 2013, while population in Illinois has grown 24%…property taxes have been extended 1683%! Since 1990, property tax extensions have grown 181%!

Source : US Bureau of Economic Analysis

Since 2001 – property tax extensions have surpassed Illinois state personal income and surpassed the Illinois GDP as of 2003. Given the economic decline in 2008, there was no slowdown in property tax extensions although the property tax extension curve leveled out a little after 2008.

Courtesy of Illinois Department of Revenue and US Bureau of Census Data

Although dated from 2013, we can see that back in the early 90s and around 2010, property taxes hit their highest points as a percentage of annual income. This appears to fall in line with our Freddie Mac Housing Price Index graph to formulate some reasoning that we can assume as why Chicagoland pricing did not keep pace with the national average on an index level.

The post Chicagoland Area Housing Price Index, Property Taxes, and Income appeared first on Property Management | Property Manager | Realtor | Real Estate | Real Estate Agent by Sean Morrissey.

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Real Estate Calculations for Rental “Buy and Hold” Real Estate : GROSS RENT MULTIPLIER How is it calculated?

Price for Rental Property / Gross Total Rents = GROSS RENT MULTIPLIER

Example :

$1,000,000 rental property price / $150,000 in gross rents collected = 6.67 Gross Rent Multiplier (GRM)

When is it used?

This calculation is great to use as an initial calculation to determine whether the building being offered is a good deal in the marketplace. Assuming you understand the GRM in your market (let’s say 8), then you can also flip the calculation to assume a fair market price for any rental property.  For example :

8 GRM x (4 unit building at $1000/mo rent or $48K/year collected) = $384,000 would be a fair price

Limitations with GRM Calculation :

Very limiting as it provides only a snapshot of a property’s performance based upon rents collected ALONE.  GRM values can fluctuate based upon the market as well.  So, I recommend this calculation only be used on initial valuation.

CAP RATE How is it calculated?

Net Operating Income of Rental Property / Purchase Price of Rental Property = Capitalization Rate %

Example :

$65,000 Net Operating Income / $810,000 Purchase Price of Rental Property = 8.02% Cap Rate

What is Net Operating Income Defined as? Use the acronym : VIMTUM

Vacancy : 3-10% of annual collected rents

Insurance : Get a quote from a qualified insurance agent

Maintainance : Typically 5-15% of gross collected rents

Taxes : Property Taxes on Your Property

Utilities : This can be electric, water, gas, and potentially a cable or internet bill

Management : Property management can 5-10% of gross collected rents

Note, this DOES NOT include the mortgage payments!!!

When is it used?

Very commonly used as a valuation calculation to provide a “snapshot” of a property’s worth if accurate net operating income is being provided.

Limitations with Calculation :

Again, this is just “snapshot” of a building’s yield return on the net operating income. This calculation is best used to assess a building current value based upon how it is operating in a very generic sense.  Obtaining ways to improve revenue or decrease expenses is your next job to find value in it’s purchase.

CASH ON CASH RETURN How is it calculated?

First Year Pre-Tax Cashflow / Initial Capital Invested = Cash on Cash Return %

Example :

$800,000 Sale Price with 5.00% rate over 25 years

$100,000 Gross Rents – ($10K Utilities + $4500 Property Mgmt + $7000 Taxes + $3000 Insurance) – $56,124 annual debt service =

$19,376 1ST YEAR CASHFLOW BEFORE TAXES

$160,000 downpayment + $10500 closing costs = $170,500 capital contributed to purchase property

$19,376 1ST YEAR CASHFLOW / $170,500 CAPITAL CONTRIBUTED = 11.36% cash on cash return When is it used?

Cash on cash return is used as a one-year preview of a property with no assumptions other than income, expense, and debt service remain the same for 12 months.

Note, Cash on Cash Return does account for DEBT SERVICE being subtracted from gross rents collected for the year.

Limitations with Calculation :

Again, this calculation is a “snapshot” in time as to what your return on investment will be but using only fixed expenses and revenue figures.

However, this calculation is more of a true return on your investment based upon the dollars you are putting into the deal.

In Summary…

Leave us your comments for how we can improve this post on real estate calculations and how these calculations may of assisted you in your purchase of a real estate investment property.

The post Real Estate Calculations for Rental “Buy and Hold” Real Estate appeared first on Property Management | Property Manager | Realtor | Real Estate | Real Estate Agent by Sean Morrissey.

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RENOVATED 2 bed/1 bath 2nd floor apartment. Spacious living room area and eat in kitchen with new flooring throughout. Brand new shower, bath vanity, toilet, medicine cabinet. Walk in closet in master bedroom. Coin laundry in building. FICO score of 625+ and income of $3000/mo or more to qualify. Available LATE EARLY MARCH 2019. No pets but open to smokers who smoke outside of apartment. AGENT OWNED.

TESTIMONIALS :
  •   We worked with Sean and Chicagoland Realty Group to identify quality tenants for a townhouse in Oswego Illinois and would highly recommend his services. It was a challenging situation with us living across the country. Sean and his team were excellent in every aspect. He very quickly identified a pool of high quality tenants from which to select and seamlessly managed the background checks, lease paperwork, deposits and move in process. Sean and his team kept us informed throughout and we had dream tenants secured within weeks of first engaging Chicagoland Realty.

    Kevin Connor
    3/27/2017
  •   We used Sean and his property management company in Wheaton Illinois for 3 years and would highly recommend his services. He was fantastic at bringing us multiple rental offers within one week of listing the property. He preformed the background/credit checks on all potential renters and helped us sort through them to find the best applicant. All communication we had with Sean was flawless during the entire time we had our home for rent. We lived in a different state from where our rental was located and never had to worry that our home was not being looked after. Sean's company is the go to in the area if you want a quality rental management company.

    Michael Hoppe
    8/06/2015
  •   We use Sean for our home in Montgomery. He and his team do a great job helping us with the property. We were nervous moving away and leaving our home in the care of someone else, but 3 years later we rest easy. Working with Chicagoland Realty Group Partners has been a great experience.

    Wesley Salmons
    10/03/2015
  •   My townhouse was managed by Chicagoland Realty Group for the last three years and they also were the realtor that sold the property. Overall, Sean runs a very good team - his staff is efficient and attentive. Issues brought up by the renter was addressed in a timely fashion and I was kept in the loop in every case. I highly recommend Chicagoland Realty Group to manage all of your properties.

    Lousymouse
    9/06/2014
  •   I have worked with Sean for 3 years and he always find my tenants for my condo. He provides me with advise before making my decisions. He keeps me informed of any issues in a timely manner.

    Anita Diaz
    9/26/2015
  •   We have been very happy with Sean and the team as they successfully helped us rent our home. The process has been easy and Sean has worked hard to help us as we were busy moving out of state and needed to sign paperwork electronically. We look forward to working with Chicagoland Leasing and Property Management in the future.

    Natalie Noblitt
    10/28/2013
CONTACT US IF YOU WANT TO SETUP A SHOWING FOR 1655 FELTEN; AURORA, IL TODAY : [contact-form-7]

The post 1655 Felten Road; Unit 11; Aurora, IL – APARTMENT FOR RENT appeared first on Property Management | Property Manager | Realtor | Real Estate | Real Estate Agent by Sean Morrissey.

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2018 saw a 1.17% increase in residential rentals in the Chicagoland area* and here are the five highest priced rental properties leased in Aurora, Illinois in 2018 :

#5. 2687 Charter Oak Drive; Aurora, IL 60502 – $2695/month rent

Located in the Ginger Woods subdivision with 4 bedrooms and 4 full bathrooms, this single family home rented in only 7 days. At 3614 square feet of living space renting at $0.75/square foot, this beautiful brick home rented in September 2018 with an unfinished basement and within popular school district 204.

#4. 1265 Arborside Drive; Aurora, IL 60502 – $2800/month rent

Rented by Chicagoland Realty Group Partners, this home was purchased by the landlord with the intent of renting the home with updates in fall of 2018. At 5910 square feet of above ground living space, this home also hosts a full finished basement with full bath overlooking the Stonebridge Country Club in Aurora.

#3. 932 Waverly Ct; Aurora, Illinois 60502 – $2800/month rent

As a Stonebridge subdivision rental within Aurora, this home opened it’s doors to Section 8 applicants and rented in only 23 days. Hosting a 3 car garage and 3457 square footage of living space, the single family home rented in November 2018.

#2. 2680 Ginger Woods Drive; Aurora, Illinois 60502 – $2950/month rent

A Ginger Woods beauty, this 4 bedroom/3.1 bath single family home rented in 14 days at full price. Located with Batavia School District #101, this home hosts 3264 square footage of living space and full basement.

#1. 3170 Bennett Place; Aurora, Illinois 60502 – $3100/month rent

Surprisingly, this 5 bedroom/4 bath single family home was the #1 for highest priced rental property in Aurora in 2018.  While Cambridge Chase subdivision homes typically do not rent for the price per square footage as high as this this home, at 3058 square footage of living space, this home rented for over $1.01/square foot and in 32 days.  Nice work!

Do you have a single family home that will rent for top dollar in 2019?  Leave us a comment below and share your ideal rental price!

The post Five Highest Priced Rental Properties Leased in Aurora, IL in 2018 appeared first on Property Management | Property Manager | Realtor | Real Estate | Real Estate Agent by Sean Morrissey.

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Here is why Property Management is easier in Aurora, IL

For those that have owned rental property for 5+ years, especially when performing property management in Aurora, IL, the answer is simple…

SCREEN YOUR TENANT APPLICANTS

However, in order to screen your applicants, you need a solid foundation to assist you with screening your tenants. While our office tends to prefer the services of www.rentapplication.net, there are several platforms to assist landlords in making sure the tenant who occupies their home will not be the tenant that destroys their home.

So, what if a local community assisted landlords in their screening process by deterring criminals with felonies from living in particular community?

At the same time, what if that same community deterred landlords that deferred safety and habitability repairs on their rental property to be reprimanded for having tenants live in unsafe conditions?

How Aurora, Illinois Property Standards plays into the screening process…

Well, Aurora, Illinois city government, along with other city governments in the Chicagoland area that are considered to be “home rule” tend to fall towards self-governance (to a mild degree) and have the ability to establish rules and regulations when it comes to establishing safe communities.

Property Standards Registration Fee and Inspection

This typically looks like an annual registration fee to allow the landlord to rent their home, an inspection of the rental property, and proof that criminal background checks were performed on all applicants 18+ years of age.

Tenant National Felony Background Checks

By performing these “background” checks or at least pretending to perform the background checks, this deters tenants that may create trouble (so long as they have had a felony on their background) from living and applying in the community.  And…Aurora, IL is no exception. Having implemented this policy years ago, tenant applicants with criminal backgrounds tend to focus on neighboring communities in terms of a place to live.  Thus, more attractive tenants live in Aurora, IL than neighboring communities.

Inspection of Rental Property for Safety Issues

Furthermore, scumlord landlords that expect to run their property into the ground also are deterred from buying in the Aurora, IL community.  The reason being…the City of Aurora Property Standards department won’t let them run a rental home with safety and habitability issues without being scolded.  This means repairs must happen within 30 days, or if a seasonal dependant repair, be rectified the following spring/summer season.

For property managers, this means homes in better repair and tenants that have gone through their own screening process to make the job easier.

While this doesn’t mean that Aurora, Illinois is this mecca of perfect tenants and landlords, it does mean that there is some justification to have rental home regulations in place at a Village level. At the same time, one notable drawback is that tenants with felonies on their background may be excluded from participating in a community they want to live in and are “pushed” to a neighboring community.

We are interested in learning what experiences you have had as a landlord or property manager in communities with rental regulations is place. Leave your comment or opinion, below, and teach us what you know.

TESTIMONIALS :
  •   We worked with Sean and Chicagoland Realty Group to identify quality tenants for a townhouse in Oswego Illinois and would highly recommend his services. It was a challenging situation with us living across the country. Sean and his team were excellent in every aspect. He very quickly identified a pool of high quality tenants from which to select and seamlessly managed the background checks, lease paperwork, deposits and move in process. Sean and his team kept us informed throughout and we had dream tenants secured within weeks of first engaging Chicagoland Realty.

    Kevin Connor
    3/27/2017
  •   We used Sean and his property management company in Wheaton Illinois for 3 years and would highly recommend his services. He was fantastic at bringing us multiple rental offers within one week of listing the property. He preformed the background/credit checks on all potential renters and helped us sort through them to find the best applicant. All communication we had with Sean was flawless during the entire time we had our home for rent. We lived in a different state from where our rental was located and never had to worry that our home was not being looked after. Sean's company is the go to in the area if you want a quality rental management company.

    Michael Hoppe
    8/06/2015
  •   We use Sean for our home in Montgomery. He and his team do a great job helping us with the property. We were nervous moving away and leaving our home in the care of someone else, but 3 years later we rest easy. Working with Chicagoland Realty Group Partners has been a great experience.

    Wesley Salmons
    10/03/2015
  •   My townhouse was managed by Chicagoland Realty Group for the last three years and they also were the realtor that sold the property. Overall, Sean runs a very good team - his staff is efficient and attentive. Issues brought up by the renter was addressed in a timely fashion and I was kept in the loop in every case. I highly recommend Chicagoland Realty Group to manage all of your properties.

    Lousymouse
    9/06/2014
  •   I have worked with Sean for 3 years and he always find my tenants for my condo. He provides me with advise before making my decisions. He keeps me informed of any issues in a timely manner.

    Anita Diaz
    9/26/2015
  •   We have been very happy with Sean and the team as they successfully helped us rent our home. The process has been easy and Sean has worked hard to help us as we were busy moving out of state and needed to sign paperwork electronically. We look forward to working with Chicagoland Leasing and Property Management in the future.

    Natalie Noblitt
    10/28/2013
CONTACT US TO LEARN MORE ABOUT PROPERTY MANAGEMENT IN AURORA, IL : [contact-form-7]

The post Why Property Management in Aurora, IL is Easier appeared first on Property Management | Property Manager | Realtor | Real Estate | Real Estate Agent by Sean Morrissey.

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PRICE IMPROVEMENT! 5030 CARPENTER; OSWEGO 4 BEDROOM / 3.1 BATH AND OVER 4000+ SQUARE FEET 7 CAR HEATED GARAGE

5030 Carpenter; Oswego is new construction as of 06/2018 with home under warranty from McCue Builders until 05/2019. Double oven in kitchen with GE Profile black stainless finish. Granite countertops with oversized island in kitchen w/marble backsplash. Cedar stained ceiling in family room. Theater room on 2nd level w/french doors and surround sound. Master bedroom offers sitting room and his/her walk in closets. Walk in bathroom in master and 2nd bedroom w/oversized shower w/bench in master bath. 2nd floor laundry. Baffle heating system offers maximum efficiency! Corner lot located on 1.3 acres. New fence surrounds backyard. Paver patio with lighting and firepit. Hardiboard siding and Anderson windows. Wifi controlled sprinkler system with backflow system. 75 gallon hot water heater and CAT6 wiring for exterior camera system. MASSIVE 7 CAR GARAGE with built in surround sound system, ceiling fan, heating system, epoxy floors, TV mount, LED lighting, security system, and jackshaft garage opener. ONE OF A KIND!

Google Reviews :
  •   We worked with Sean and Chicagoland Realty Group to identify quality tenants for a townhouse in Oswego Illinois and would highly recommend his services. It was a challenging situation with us living across the country. Sean and his team were excellent in every aspect. He very quickly identified a pool of high quality tenants from which to select and seamlessly managed the background checks, lease paperwork, deposits and move in process. Sean and his team kept us informed throughout and we had dream tenants secured within weeks of first engaging Chicagoland Realty.

    Kevin Connor
    3/27/2017
  •   We used Sean and his property management company in Wheaton Illinois for 3 years and would highly recommend his services. He was fantastic at bringing us multiple rental offers within one week of listing the property. He preformed the background/credit checks on all potential renters and helped us sort through them to find the best applicant. All communication we had with Sean was flawless during the entire time we had our home for rent. We lived in a different state from where our rental was located and never had to worry that our home was not being looked after. Sean's company is the go to in the area if you want a quality rental management company.

    Michael Hoppe
    8/06/2015
  •   We use Sean for our home in Montgomery. He and his team do a great job helping us with the property. We were nervous moving away and leaving our home in the care of someone else, but 3 years later we rest easy. Working with Chicagoland Realty Group Partners has been a great experience.

    Wesley Salmons
    10/03/2015
  •   My townhouse was managed by Chicagoland Realty Group for the last three years and they also were the realtor that sold the property. Overall, Sean runs a very good team - his staff is efficient and attentive. Issues brought up by the renter was addressed in a timely fashion and I was kept in the loop in every case. I highly recommend Chicagoland Realty Group to manage all of your properties.

    Lousymouse
    9/06/2014
  •   I have worked with Sean for 3 years and he always find my tenants for my condo. He provides me with advise before making my decisions. He keeps me informed of any issues in a timely manner.

    Anita Diaz
    9/26/2015
  •   We have been very happy with Sean and the team as they successfully helped us rent our home. The process has been easy and Sean has worked hard to help us as we were busy moving out of state and needed to sign paperwork electronically. We look forward to working with Chicagoland Leasing and Property Management in the future.

    Natalie Noblitt
    10/28/2013
Contact Us to Preview 5030 Carpenter; Oswego, Illinois : [contact-form-7]

Checkout our BLOG for more great info on Chicagoland and Oswego real estate!

The post 5030 CARPENTER; OSWEGO | HOME FOR SALE appeared first on Property Management | Property Manager | Realtor | Real Estate | Real Estate Agent by Sean Morrissey.

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Five Ways to Earn Wealth Through Rental Real Estate

In conjuction with other investments, the primary benefits of investing in rental real estate is that there are many means in which wealth can be accrued. When combining these figures into a total return on investment, which may be considered the “internal rate of return”, those speculating in rental real estate can better understand why investing in this sector makes good sense.

With that in mind, here are the five ways in to earn wealth through rental real estate :

APPRECIATION OF REAL ESTATE:

So, if your rental property appreciates from $100,000 to $110,000, your rental home has appreciated 10%. This means you have obtained a 10% return of your downpayment as well as a 10% return on the mortgage you have from the bank. Assuming you had a 20% downpayment ($20,000) this means your financial leverage brought you back $10,000 on $20,000 or a 33% return on your investment!

RENTAL CASHFLOW ON REAL ESTATE :

Perhaps the most common sense reason for investing in “buy and hold” real estate is because of the profits generated from actually renting the property. To calculate this figure, you will take monthly rent and subtract expenses (mortgage, property taxes, insurance, vacancy, utilities, and maintenance). The leftover amount is the residual income your rental home has generated.

Let’s assume the rental home profits $200/month after expenses. That means $2400/year in profit from rental income. To determine rate of return (cash on cash return) of the initial investment of $20,000 on the $100,000 home, we divide $2400 by $20,000 and obtain a figure that is 12% return on investment! 

PRINCIPAL PAYDOWN OF MORTGAGE :

Assuming you do not have an interest-only mortgage, your principal on your mortgage gets paid down monthly from the tenant making their timely rental payment. On the purchase on your $100,000 rental home – you have a total mortgage of $80,000 and let’s say it is amortorized over 30 years at 5.00%. Over 12 months, the landlord will have paid off $1281.00.  Dividing $1281.00 into the initial investment of $20,000, this means a 6% return on investment!

TAX BENEFIT THROUGH OWNING RENTAL REAL ESTATE :

Unhinged by the tax reform of late 2017, owning rental real estate still provides great tax benefits to landlords. This means landlords will complete a Schedule E at tax time and will find they can write off expenses from rental income.  This includes leasing fees, property management fees, repairs to property (not considered capitalized expenses), etc.  This Schedule E income, or decrease in total income, brings tax benefit to landlords on their annual tax return.

Back to our example of the $100,000 rental home purchase, when we take the average tax benefit which can be a bit hard to measure, we can take a conservation figure of 5% return on your investment!

INFLATION LEVERAGE

Courtesy of the mind of Keith Weinhold (host of a fantastic podcast), inflation is another benefit to landlords who “buy and hold” their rental real estate and do not refinance the property.

Just as inflation erodes the value of the dollar in your pocket, the fixed nature of the mortgage on the rental property also gets eroded by the nature of inflation. This benefits the investor over time.  Again, a bit hard to measure, but, let’s use a conservative figure of 2% to inflation over time and in the first year of the $100,000 rental home purchase.  So, this means the total return on this portion of the investment is    2% as a return on your investment!

In summary, here’s the breakdown of the 5 ways in which our example piece of real estate at a $100,000 purchase while evaluating the initial $20,000 invested :

  • Appreciation of home in year one : 33% on $20,000 invested
  • Rental Cashflow of rental real estate : 12% on $20,000 invested
  • Principal Paydown of rental real estate : 6% on $20,000 invested
  • Tax Benefit of rental real estate : 5% on $20,000 invested
  • Inflation Leverage : 2% on $20,000 invested
Thus, based upon the $20,000 invested in the $100,000 rental property, this means an overall return of 58% return on the total dollar invested. Can you find another investment that can provide a return such as this?

If you can, leave us a comment!  If you find a means to test this calculation or if this calculation inspires you to enter the world of “buy and hold” rental real estate, leave us your thoughts. Fun stuff!

The post Five Ways to Earn Wealth Through Rental Real Estate appeared first on Property Management | Property Manager | Realtor | Real Estate | Real Estate Agent by Sean Morrissey.

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Tech is KING. Leverage Technology to be your own Property Manager and Save Money.

Over the past 10 years, technology has provided a lot of tools to leverage the everyday landlord be able to manage their own rental portfolio and not have to pay a property manager to do so.

Question is…with these tools and the leverage provided, will your rental property be managed in a sustainable manner to the best of your bottom line and save you time, as the landlord, to put time and money towards it’s highest and best use.

Regardless, here are tools to assist landlords in the quest to save money on property management by hacking their duties via technology :

Hack #1 : FIND AN AFFORDABLE PROPERTY MANAGEMENT SOFTWARE

In the past five years, there have been all sorts of property management software to hit the market and save landlord’s money. Here are a few I recommend :

Tenant Cloud :

Pros : Own less than 75 units and this software is free. For as little as $9/month, accept payments via Tenant Cloud software. Tenant Cloud has a great interface and tenants can request repairs through the software. Syncing via Google Calendar is nice feature as well as providing signature towards lease formation.

Cons : Having to wait 3-5 business days for rent is way too long. We have experienced that it can take longer based upon holidays or if rent is paid AFTER normal business hours.

Cozy.co :

Pros : Market your rental listings and handle rental applications through this FREE software. Receive rental payments via the software as well as repair requests online as well.

Cons : Again, you have to wait 3-5 business days for rent to clear to your account.

Hack #2 : PROVIDE A 24/7 CALL CENTER

Perhaps the most helpful tool a landlord can provide their tenant base when trying to save on property management is to setup a repair call center that functions 24 hours a day / 7 days per week.

The call center should, ideally, speak english and spanish, and provide a means to walk the tenant through the problem to confirm if common sense is the issue or there is a true repair issue in place.

Here’s a few call centers I recommend that are both effective (operate 24 hours per day / 7 days per week) and cost effective :

EZ Repair Hotline :

For roughly $300/month, EZ Repair Hotline will provide a 24 hour hotline for tenants to call with repair needs. While a landlord starting out may not be able to justify this cost, this service can be very effective to the landlord ready to scale to the next level.

There’s also the option to provide just after-hours call center at a reduced amount. Operators will handle calls and troubleshoot the tenant repair request before issuing vendors.

Supertenders :

While more expensive than EZ Repair Hotline, Supertenders is the gold standard of call centers. They provide a month to month contract, as well as a 24/7 hotline service, nightly service, or an all-inclusive service called “MaxTenders”.  This includes 24/7 call center, bids and estimates, entering repair data into management software, obtaining investor approvals, and arranging appliance purchasing.

Hack #3 : Obtain a Property Management Inspection Software

It’s important to get into the rental property, sometimes every 30 days, to insure that the tenant is taking care of the home. Most property managers get out to the home once per year and may charge you for this activity.

With this in mind, if you are willing to put in the effort to inspect the property yourself or pay someone to do this activity on your behalf, paying for an inspection software can be an effective action.

Here’s a few inspection software providers I recommend :

Zinspector.com :

The best part of this software is that it is FREE if you have five units or less. Then, for as little as $22/month, you can input unlimited properties into the software!

Zinspector provides the opportunity to take video, photo, move in/move out inspections, 360 degree panoramic photos, and integrates with Rentec Direct software. The opportunity to sync to Appfolio software or Rent Manager exists for a more expensive cost.

Happy Inspector :

A solution our real estate office used for years was with Happy Inspector. A more expensive option than Zinspector, Happy Inspector has not evolved as well as Zinspector, but, does provide a better interface.

Reports can emailed to you or kept in the Happy Inspector cloud. You can choose between move in/out reports or quarterly inspections. The application is effective on both Apple and Android devices.

In Summary …

Being a landlord involves four primary issues : leasing, rent collection, inspection of property, and handling repairs to home. As a landlord, if you are able to leverage these duties to save you time at a nominal cost, then, find a way to crack the property manager’s code is on your horizon.

Feel free to leave comments to discuss how you may have been able to better leverage your time as a landlord and not pay for a property manager.

The post Leverage a Property Manager’s Job to Save a Landlord Money appeared first on Property Management and Real Estate Sales | Chicagoland Realty Group Partners | Aurora, Illinois by Sean Morrissey.

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Why Hire a Property Manager?
  • Save the landlord time
  • Save money with time invested on the rental property
  • Access to a 24 repair call center
  • Have a representative that is close to the property to evaluate
  • Obtain better marketing of rental property with a property management company
  • Receive warranties and guarantees offered by a property management company
  • Use of a better screening procedure when evaluating tenants
Best Questions to Ask When Evaluating Property Management Companies : What property management software is being used and WHY?

Why asking this question, it is wise to find out if the management software provides a cloud system for storing files.  Leases, management contracts, inspection reports, etc. should have the ability to be stored in the “cloud”. You’ll also want to make sure there is a portal login for both tenant/resident and landlord. Reports should be provided in “real time” and not have to be “pushed” to the landlord. The management software should have the ability to receive repair requests and can track the repair process within the software.

Ideally, having an inspection software that lets the property management company perform inspection (complete with photos) is important to assisting in maintaining condition of property.

Obtaining a demonstration of the property management software is ideal!

How is Rent Collected and When is Rent Dispersed?

Tenant/Resident should be permitted to pay rent by cash, check, credit card, or epay via the property management software web portal. If EPay is permitted, having this option at no cost to the tenant/resident is ideal. If credit card is permitted, what is the processing fee and who pays the processing fee? Then, if a cash deposit of rent is permitted, how is this documented to not show a misrepresentation of funds?

A landlord will also want to evaluate who pays fees for a check that goes NSF and if the tenant is penalized.

Furthermore, any processing fees for electronic funds transfer should not be charged to the landlord and a landlord should not have to wait longer than 3 business days to receive these rents.

How are Repair Requests Handled from Beginning to End?

All tenants should be provided a 24 hour repair hotline to request repairs and provide online repair requests as well. The repair hotline should speak both english and spanish (depending upon your local market). The operator, on the phone, should be able to evaluate whether the call is deemed an emergency or non-emergency.

Any repair request should be instantaeously emailed to the property management company for evaluation and confirmation of whether the call is an emergency or non-emergency.

With this in mind, ask the property manager what an emergency and non-emergency is defined as and if they have an in-house staff or contract out vendors to assist in the repair. Make sure these vendors are insured and obtain good reviews online.

Most importantly, most property management contracts spell out a preauthorized limit that the manager can spend for a repair request. Confirm what this amount is within the management agreement.

Finally, you will want to confirm how repair requests are documented and ask how the followup of repairs are handled for feedback from the tenant.

What is the Rental Property Inspection Procedure?

This includes how often a rental property is inspected and how move in/move out condition reports are handled. Confirmation of whether inspection reports are signed by landlord and tenant signature as well.

Most importantly, confirm which inspection software is being used and review what an inspection report looks like to the landlord. Photos should be included in each report.

Confirm if the landlord is charged for the inspection and how much this will cost. Then, obtain a list of what is specifically is being evaluated and how preventative maintainance items will be handled over the course of the inspection of the rental property.

How Much are the Property Management Services?

Learn if the fees are flat fee, percentage of monthly rent, or offered al la carte. Services should be spelled out, IN COMPLETION, in the property management agreement.

Guarantees or warranties can be provided and any landlord should review those in writing.

Learn about any cancellation fees, fee for city inspections, and learn who holds the security deposit on behalf of the tenant. If fortunate, you may be able to obtain a free trial of services.

Finally, learn what is NOT INCLUDED in the management fee in which the landlord can be charged.

How is the Landlord be kept in Communication?

Learn if reports are provided in real-time and by email. Ask about the best way to contact the property manager (email/text/phone). Always helps to learn about how the management team is structured and what level of authorization is required for a property manager to care for a repair.  Meaning, some repairs may require landlord approval.

How is Leasing of the Property Handled?

Any vacancy should be distributed on a variety of websites and it always helps if local real estate brokerages will be showing the home.

Tenant screening should be performed, in-house, and provide a full detail credit report, criminal background check, and eviction background check.

You may wish to ask if the landlord is forced to make the FINAL decision regarding any applicant. The property management company should be drafting the lease and the landlord should review this lease prior to signing a management agreement.

Again, obtain confirmation on who holds the security deposit.  If property manager holds this deposit, how is this deposit held and how can deposit get released.

Learn about the fees for renewing a lease, filling the vacancy, and how long is the listing term of the lease listing agreement.

Finally, learn the cancellation fee for withdrawing the listing.

How is Late Rent Handled?

In order to ask this question, you will need to learn when rent is due and when it is considered past due. Learn what the late fee is fee and who gets to keep the late fee.

Learn how Notices are handled and how they are distributed.

Understand the property manager’s role in eviction and who is responsible for payment of the eviction. Landlord may wish to learn who gets to select the attorney that will represent during the eviction.

What Reviews are Provided on the Property Management Company?

Ideally, the property management company should be a recognized and accredited organization. This means being a Better Business Bureau member, no license violations with the State regulatory body, and not having a variety of negative reviews from landlords and disgruntled tenants.

Landlords should also consider whether the property management company manages part time and sells full time.  You don’t want to work with a company that is not fully invested in property management.

Is the Property Manager a Real Estate Investor?

Ideally, having a management company that practices what they preach is perfect. Learn how many properties the management company owns and see if you can obtain addresses you may be able to drive too and evaluate condition. You may also be able to earn enough trust to see if you can call tenants for a referral.

The post Best Questions to Ask When Evaluating Property Management Companies appeared first on Property Management and Real Estate Sales | Chicagoland Realty Group Partners | Aurora, Illinois.

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