Is having tenant insurance coverage really that important?
- March 3, 2022
Tenant insurance (often referred to as renter’s insurance) helps cover the costs related to replacing or… Read More
Two of the most important questions that a landlord thinks about are: (1) Will I cash-flow positive this year? And (2) Will my property be well taken care of? An investor might purchase real estate for the main purpose of generating rental income. However, after paying out certain service fees, it is possible they could end up with little to no income earned. Or worse yet, they can end up being negative for the year. This occurs when your outlays and expenses exceed the amount of income earned. Producing positive cash flow from rental income can only work when the math makes sense.
The second question relates to the condition of the rental property while it is being tenanted. Perhaps you may find really good tenants that do take care of your property. Likewise, you could also end up with unruly tenants that just ruin the condition of the property through negligence. In the next section, we will explore the two common approaches that a landlord will use when renting out their property. Lastly, we provide a unique opportunity for all landlords and their rental property.
Suppose you have decided to purchase a property for the sole purpose to generate rental income. There are two common ways to rent out the property:
The first approach is to hire a licensed real estate brokerage firm which will find a suitable tenant to rent your property. This is the most common approach for property owners that do not have the time to spend on finding suitable tenants.
The second approach is for a landlord to find the suitable tenant(s) themselves. This Do-It-Yourself (DIY) approach usually requires substantial amount of time. Some of these responsibilities as you well know include: dealing with multiple inquiries from potential tenants, arrange for showings/viewings of the property, income verification, credit worthiness and reference checks. Generally speaking, landlords that have the time, are well experienced and want to save on leasing fees will adopt this method.
At Homesgate Inc., we now introduce a new and improved approach. We bring a revitalized and unique solution for landlords and their rental property needs. Our tenant placement service eliminates all the burden and pressures of finding suitable tenants. Our selective screening process will reduce the risk of unqualified tenants. We create a list of highly recommended, verified and credible candidates all waiting to be placed into the best available locations. The thing that makes Homesgate truly unique is our residential property management service called Homesgate Management. This additional value-added service provides all the usual services involved with property management. Some of these services include: pre/post inspections, check in/out tenants, rent collection, tenant inquiries, co-ordinate house cleaning, home maintenance and repair work and more. As a landlord working with Homesgate, you will also have access to our recommended team of technicians for all aspects of home related repair work. This is a great option especially for landlords that may not have a technician available for certain tasks. This could save time and more importantly, address the issues in a timely manner. However, some landlords may prefer to use their own technicians. We will leave that for you to decide.
The next question you are probably asking is how much does a service like this cost? On average, property management fees can run you about 10% of all monthly rental income earned. Here at Homesgate Management Inc., we charge our landlords ZERO. That’s right! We do not charge our landlords a property management fee. You are now probably thinking that this is too good to be true. While this used to be the case, it will no longer be the norm.
If you were to add up the leasing fee and combine it with the cost of the property management service, it would easily amount to thousands of dollars in savings per year. This is money that is added back into your annual earned rental income. You will be earning a greater positive cash flow from your rental property. The math now makes sense. Not only will you be earning more, but your property will also be in much better condition year after year.
Homesgate Inc. has the infrastructure and resources in place to deliver the best results for our valued landlords. Homesgate sets a new standard and our integrity matters most to us. Together with our landlords, we can achieve the most optimal results for your investment needs. We are dedicated in building and maintaining a long standing partnership with each of our valued landlords.
So reach out to the Homesgate team and let us get to work. Together we will revolutionize the industry.