Owning rental property in Dayton is often an opportune investment. When you have the right properties that are effectively leased, managed, and maintained, you can expect to earn some great cash flow in the short term and some impressive ROI in the long term.
It’s also risky.
Real estate investing requires a lot of time, knowledge, resources, and expertise. While it may seem easy enough to find a tenant and collect rent, there’s often a lot more involved. It’s easy to make an expensive mistake, and you don’t want to risk your investment property or your financial stability by making the wrong decision or ignoring an important law.
We’ve seen some of these common risks ruin DIY landlords. Our team offers a better alternative: high quality, professional Dayton property management and peace of mind.
Be mindful of these potential pitfalls, and do everything you can to avoid them.
Risk and Liability with Dayton Rental Properties
There’s always risk involved in renting out a property, and landlords take on a lot of liability when they begin leasing a home to tenants. It’s one of the best reasons to hire a professional property manager.
We have talked to property owners who weren’t sure how to enforce leases or lawfully evict tenants. We began managing a portfolio for one owner who inherited 16 rental units from his father, and wasn’t sure where to start when it was revealed that the former property manager was a felon known for swindling people out of land and money.
You need to protect yourself and your investment with reliable, trustworthy property management. When you try to manage on your own, you could miss a lot of important details. For example, you’ll need to know the difference between a pet, a service animal, and a companion animal. You’ll need to understand fair housing laws and security deposit requirements and the difference between tenant damage and general wear and tear.
These things can get complicated quickly, and you don’t want to face the consequences of inaction or bad decisions.
Losing Money as a DIY Landlord
If your property is vacant for weeks and months, you’re losing money. If you are so desperate to get a tenant placed that you ignore some of the most important tenant screening problems, you could end up with a tenant who doesn’t pay rent, damages your property, or causes conflicts with other tenants.
Leasing a vacant property takes a lot of your time. You have to do some research to establish the correct rental value, create a listing that will get the attention of tenants looking for homes, respond to the phone calls and messages that start coming in, and schedule showings at the property. Then, you have to manage the application process and screen all applicants in accordance with fair housing laws. There’s the lease agreement and the security deposit.
Unless you have a lot of time to dedicate to these tasks, it’s best to hire someone to do it for you.
It’s also safer. Property managers know what to look for in a tenant and they know what to avoid. You won’t have to worry about placing a bad tenant who won’t pay rent or follow your lease terms. You won’t have to worry about long and expensive vacancy periods.
Unique Risks for Out-of-State Investors
Owners who do not live inside of Montgomery County need to have a designated agent for their Dayton rental properties. This does not have to be a property manager, but it’s probably a good idea to hire one instead of relying on a local friend or family member.
You need a local resource who understands the process of leasing, managing, and maintaining a rental property. A management company with excellent vendor relationships and a deep knowledge of the local rental market and real estate trends will provide a better investment experience for you and your residents.
Whether you’re a new investor without management or you’re trying to juggle the responsibilities that come with a growing real estate portfolio, contact us at ManCo Property Services. We can straighten out complicated situations, bring order to chaos, and help you earn more on your investment properties.