Investing in Your Investment: Making the Choice That's Right for You
You've Got Options. We've Got Options.
Whether an alternative to the sale market, relocation or primary intent, asset management remains a worthwhile investment as a way to not only secure cash flow, but also to grow value. However, homeowners must make the decision that works best for their lifestyle, their underlying financial goals and the expectations therein. Here at North Star Property Management, we provide owners with opportunities to help them achieve their goals. Every owner's journey looks slightly different than the next;, and our goal is to provide options and deliver a level of service that is customized and conducive to every investor.
The services we provide are not strictly management. Did you know we also provide lease placement services? Lease placement services, also known as owner-managed or personal property management, allows owners more control over maintaining their property while we help secure a well-qualified tenant. If you’re considering leasing your property, keep reading to learn about the pros and cons of the owner-managed option so you can make the best decision for you and your asset.
- More Control. From the financial nuances to upkeep, personal property management allows the homeowners more control over their asset and the expectations they hold tenants to while removing the stress of finding a well-qualified tenant. It also allows for a more transparent relationship with renters as well as continuous oversight of the property.
- Direct Communication. Homeowners, particularly investors, tend to prefer placing long-term tenants, so it comes as no surprise that they want to provide an exceptional living experience for their renters - part of which is building rapport through direct, effective communication. Readily available owners who prefer direct oversight on the day-to-day happenings as well as overall property care may fare vest in an owner-managed arrangement.
- Fees & Rent Collection. Collecting rent is the pinnacle of an investor's cash flow. And when it comes to finances, trust is of the utmost importance. But trust isn't as cut-and-dry for some as it is for others - understandably so, considering the significance of an asset that is as valuable as it is personal. Furthermore, there is a larger goal at the heart of every homeowner’s decision to lease their property. Maintaining financial control and collecting rent in full is an attractive option for the financially savvy investor.
- Maintenance & Upkeep. Whether preventative, seasonal or restorative, preserving equity is both necessary and rewarding in the long run. Necessary not only for the integrity of the property, but also for liability reasons per standard lease agreements. However, it can be costly. And because every property has its quirks that make it unique, immediate, direct involvement in making decisions on upkeep certainly makes sense. From costs to bids to necessities, having a say every step of the way lends to an owner’s control in maintaining their property with their overarching goals in mind.
- Liability & Legal Mediation. Landlord-tenant laws are always in a state of flux. While there are plenty of online resources to help investors familiarize themselves with the ins and outs of the latest mandates, these laws are often intentionally vague and increasingly in favor of renters. As such, the actual implementation can look a lot different than the initial understanding. Since legal woes are already stressful enough (not to mention expensive), a homeowner’s ability to effectively navigate their duty and liability with confidence is something that should strongly be considered before entering into a rental agreement.
- Sustained Communication & Coordination. Even though direct communication with renters may be ideal, the daily nuances and larger coordinated efforts like scheduling repairs can be tiresome and a source of strain on an owner’s livelihood. After all, tenants are creating their own temporary livelihood and some will naturally require more attention than others, especially if relocating and/or from out of town. Additionally, the stress of moving mixed with incompatible expectations and/or negligence and non-compliance can lend to tense relations, which can leave both parties wanting and discouraged. It all depends on the owner’s bandwidth in sustaining an equitable relationship with their renters.
- Maximizing Gain. Clearly, asset management requires a level of service and effectiveness that can be easily overlooked when considering financial goals. It also requires a degree of savviness, oftentimes taken for granted until push comes to shove. Without tried-and-true knowledge guiding management decisions, homeowners may find themselves short -changed and/or taken advantage of which could heavily impact not only their livelihood, but the trajectory of their journey.
At the end of the day, it comes down to trust. Ask yourself whether you trust a team to take care of your home like you would, and which option is most beneficial to your overall financial goals. Regardless of which decision you make, we are here to help you navigate your investment journey. We want to be of service to you and help you make the right choice, but only you can decide what’s best for you.