The Rules of Property Management

In every sphere of human endeavour, there are written and unwritten rules of operation. Sometimes, the unwritten rules are even more important than the written rules. When it comes to property management, there are several unwritten rules that are important to note if you are saddled with the responsibility of managing a property or you are a property owner that decides to handle this task yourself. We have heard it said many times that ignorance of the law or rules is not an excuse, meaning that your ignorance will not protect you from the consequences of violating the law.Property management is an essential aspect of the real estate investment equation for several reasons. First of all, rental income flows from leasing or renting your property and managing it well. Secondly, having a poorly-managed property will negatively affect your return on investment. If the property is not properly maintained by the tenants, it will depreciate faster. If the tenants are not paying their rents, then you are not earning income from your property. If you must engage in litigation over the property, then you are also losing money. While some of these issues are unavoidable no matter how ethically or professionally you manage your property, you can significantly reduce this risk by following simple rules of property management.One of the basic rules is that you should avoid managing a rental property directly except that is something you also do for a living. The experience of several real estate investors revealed that it is often better to have a professional manager interface between you and your tenants. Property management is time consuming with the possibility of several issues coming up that you have not planned for. If you own several properties, the burden of its management will simply drain you. To avoid the emotional and physical stress that comes with this, it is usually better to hand it over to professionals who do this for a fee. The fee is a percentage of the rent collected.Written by: Abiodun DohertyCopyright: PUNCHOriginal article: http://punchng.com/salient-rules-on-property-management/

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