Multifamily expert Andy Larson writes that with the help of new and evolving software solutions, any landlord can compete in the rental market by letting automation, big data and smart spaces do most of the heavy lifting. Flourish.
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Whether you are buying a home to live in or as part of an investment strategy, the ability to sell your home at a profit is critical. When market conditions make such a sale impossible or unwise, owners often retain the units and rent them out.
Welcome to the world of “accidental landlords,” people who never plan to rent out their properties and often have no experience running such a business.
Professional real estate investors have the expertise to navigate unexpected business models. Still, it can be a significant burden for people who rent out their homes or apartments, as they have to deal with everything from maintenance to property tours to collecting rent.
The good news is that these accidental landlords can leverage a powerful, user-friendly software platform to succeed (or even excel) in an industry they never thought of joining.
In any market, property owners want to buy low and sell high.When house prices rise, people who own homes want to sell, and House prices plummethomeowners are holding on to their properties for fear of losing their investment.
as Mortgage rates rising, existing owners are unwilling to give up a 3% mortgage in a 7% market.And because more and more young people Prefer renting to buyingit is usually easier to find tenants than buyers.
Challenges facing accidental landlords
There are expenses associated with keeping a home in a marketable condition, and a home that cannot be sold brings in no income, forcing owners to rent out the space to generate a profit.Since the lease will result in the property depreciated valuewhich is not ideal for homeowners whose ultimate goal is to sell.
Many cities and counties have strict tenant protections that prevent owners from selling occupied properties when the market is strong. While residents should be treated fairly, these regulations can lock landlords into unnecessary long-term business relationships.
Ultimately, the biggest challenge facing unexpected landlords is the unexpected nature of their business. Most of these owners never intended to rent out their properties. They must treat their property as a going concern and learn how to succeed in a new industry rather than making a net profit from their initial investment.
Renting a property requires more than just handing someone a set of keys and letting the money roll in each month; the owner must provide maintenance services, prevent churn, bring in new residents quickly, and ensure rent is paid in full and on time, all while maintaining close contact with residents Maintain positive relationships.
new solutions
The good news for accidental landlords is that technology remains the great equalizer. The use of professional software platforms is becoming increasingly simple and intuitive, requiring no more professional knowledge or industry experience than ordinary mobile phone users. With just a few taps of a smartphone screen, even the most accidental landlords can turn their unexpected business into a successful business.
Many rental platforms have simple systems for inspecting properties, tracking issues, and arranging and paying for repairs. These portals also allow you to easily communicate with residents. Residents can log any maintenance issues and upload film or video of the problem, keeping landlords informed without having to go through a confusing series of emails or phone calls.
The rental software also features an intuitive payment system with recurring payments, trackable record keeping, bank integration, and more. The right system can streamline and smooth any interaction, tracking leases, lease agreements and payment history.
For many property owners or managers, arranging tours for potential residents is a significant challenge. Finding a convenient time to show a property that suits both owners and tenants can be difficult, and many visitors feel stressed if the owner or manager is present. Thankfully, residential software also includes apps and platforms that make traveling easier.
Although online resources provide a wide range of information, most real estate consumers seek the actual experience of viewing a property in person before making a decision. Self-guided tours allow visitors to arrive at any time, visit any number of properties, and follow their own path through the space without wasting valuable time from the manager or leasing team. These systems often allow potential customers to request a rental on the app after their trip.
Few people want to stumble into an industry. Owning and renting homes is a fulfilling and profitable career for many professionals, who often take pride in providing a public benefit. But doing this successfully requires training, expertise and passion.
With the help of new and evolving software solutions, any landlord can thrive in the rental market by using automation, big data and smart spaces to do most of the heavy lifting.
These tools can help families make the most of a home they can’t sell, or turn the option of delaying a sale into a gateway to a whole new industry. With the right digital tools, renting out your property can be a blessing.
Andy Larson has 25 years of experience in the commercial real estate industry, including 20 cutting-edge technology solutions for the multifamily sector. In addition to leading Tour24’s revenue team and strategic partnerships, Larsen Also responsible for expanding the company’s reach and assisting Tour24 in meeting demand.Contact Larson LinkedIn.
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