If you're a new Sarasota landlord—or maybe you're considering putting your property up for rent—the idea of handling everything involved with property management can be daunting.
A rental property can be an excellent investment—if managed well. However, you might not know this: you don't have to be involved in the day-to-day operation of managing your rental property to enjoy the benefits of an investment property.
Here's our guide to finding the best Sarasota property manager!
Not Every Landlord is the Same
Becoming a landlord can happen in a variety of ways.
Some investors love the idea of real estate. They research and target properties to build a rental property business. As these investors become better investors, they realize the benefits of hiring a property manager to maintain their free time while enjoying a nice return of passive income.
Other landlords happen by accident. You inherit property, or you face a relocation, but it's not a good time to sell the newly inherited property or your current home.
Knowing what to do with a "bonus" property can be overwhelming—especially if it's an unplanned situation. The property won't go away on its own. You'll either nteed to sell it or consider turning it into a rental.
If you've never thought about being a Sarasota landlord, don't let the fear—or lousy timing—of a rental property dissuade you from considering it as a good option. With an excellent Sarasota property manager, you won't need to handle anything, and you can make some good money without the work involved with being a landlord.
How Does a Property Management
Company Help Landlords?
So, what does a property management company do? In a nutshell, a little bit of everything.
New landlords are often unprepared for everything involved on a day to day basis, so we have developed a Sarasota landlord guide to help with that problem. It's not as simple as putting a notice in the paper and collecting rent.
Today's landlords need to have the skills to manage tasks before, during, and after a tenant lives in your property. Property management is a combination ofListing and marketing the property
- Screening and selecting the right tenants
- Inspecting and preparing the property for tenants
- Creating and enforcing lease agreements
- Collecting rent and security deposits
- Routine and emergency maintenance
- Tracking finances
It's a lot! If you already have a day job, adding all of these tasks onto a full-time workload is tough to do.
Successful landlords have a mix of people skills, business management skills, and handyman (or woman) skills. While most landlords learn these skills as they go, you have to commit to it. Falling short in any of these areas can hurt your rental property income.
If these skills aren't of interest to you, but the idea of rental income is appealing, you need a property manager.
Property managers are experts in marketing your property, finding and screening the best tenants, handling all details involved with lease agreements, collecting rent, anything needed for maintenance, and tracking and reporting your rental property finances.
But Wait! There's More . . .
We've told you about some of the day-to-day benefits of hiring a Sarasota property manager and keeping a property as a rental. Having a well-managed rental property provides some less obvious perks, as well.
Your rental property is a business. Besides the monthly income from a rental property, having a rental property business can help you when it's time for taxes.
We aren't giving legal tax advice but—as a general rule—landlords can deduct some expenses for your rental property that you can't deduct for your personal property.
Maintenance and Repairs
Performing routine maintenance on your own home is never fun, and it's always an expense. When it comes to significant repairs on your personal property, you risk losing money unless the repair also improves your property value.
With your rental property, maintenance and repairs can often be a tax deduction. Remember, your rental property is a business. To keep your business running well and your tenants safe, landlords must perform repairs. Track these expenses and work with your accountant at tax time.
Insurance and Interest
The home insurance on your personal property isn't tax-deductible. However, the insurance on your rental property can be a tax deduction. Deduct the interest on the mortgage for your rental property, too.
Property Management Fees
One of the best perks of hiring a property management company is this: your property manager is a tax deduction.
The fees you pay your property management company are tax-deductible! Using rental property tax deductions wisely helps offset the costs you pay to your property manager.
How to Know if You Should Hire a Property Manager
Knowing if you should hire a Sarasota property manager can come down to asking yourself if you have what it takes to be a landlord.
Do you have:
- The time to devote to doing everything it takes to be a good landlord?
- The expertise to know what you need for the job?
- The inclination to learn as you go and risk mistakes along the way?
If you answer "no" to any of those questions, it's probably time to hire a property manager.
You could pass up the opportunity for additional income from your rental property if you feel like owning the property means you have to take on the landlord tasks, too.
Let a professional property manager get you started. They'll ease your fears and have your property generating income sooner rather than later.
Make sure your property management experience is the best! Hiring the right property manager is an excellent benefit to your peace of mind and your rental property income. Choosing the wrong property manager can be a hassle for you and your tenants, plus it can be an expensive mistake.