Tag Archives for " OH property management "

Should I be a landlord in Cleveland, Ohio?

Cleveland, Ohio is a very unique market

Do you have what it takes to be a landlord? That is an important question to ask yourself before you start buying rental properties. Unfortunately, there are a lot of courses out there encouraging people with the benefits of property ownership without explaining the risks involved.

Cleveland, Ohio is a very diverse area with a lot of different zip codes, and the zip code you buy property in will make a huge difference in what your experience is as a landlord. Do you know the area you are looking at buying properties? Again, there are courses that make being an out of the area landlord sound glamorous, but you are taking a real risk buying properties in an area you’ve never seen before.

Are you a worry wart? If the answer is yes then you should not be a landlord. You probably should not be in business at all. Stick with safe investments like bonds. You won’t have the potential for large returns, but you also won’t have the risk of a total loss.

Do you have financial limitations? For many, they go into real estate with no extra income. Don’t invest all of your retirement savings into real estate. Yes, there are success stories of people who spent their last hundred dollars to get into the business and ended up millionaires, but that is not the norm, and there is a lot more to the story than what you may hear.

If you have no cash reserves, you are taking a significant risk. A single natural disaster or sewer collapse could financial destroy you. You’ll be left waiting for the insurance to pay out to make the needed repairs, or the insurance will refuse the claim, which can happen, and then you have to pay out of pocket. You MUST have cash reserve for the worst case scenario.

Often times people are blinded by the potential and fail to see the risk. You need to have an investment mindset, which means you think long-term. Can you do that?

Can you put 20% “true” equity down on a property. Housing prices are not always what they seem and properties do not always follow national trends. I’ve seen landlords try to sell a house “as is” because they are mad about damage made by a tenant. What they don’t realize is that $5,000 worth of damage can drop the value of the home $50,000. This may not sound fair and it may not be fair, but it is the reality of the situation. If buyers have to put work into the home, they are going to want it for well below market value.

You need to understand the Cleveland market and know what you are getting into. Otherwise, do not invest in Cleveland and don’t be a landlord.

Our experienced investment property management team can relieve you of the burden of managing your rental property while saving you some serious money! Call us today at (440) 220-7300 to see how we can help you!

 

Do You Have Hoarders Living in Your Property?

Have you seen the show Hoarders?

It depicts people with compulsive hoarding issues that cause them to collect things…lots of things. Hoarding leads to a home filled with trash and clutter. So much so that rooms get blocked off or it becomes unsafe to navigate the apartment.

Hoarders can also lead to damage to the structure of the building. There can be issues like water leaks that go undetected due to the hoard. Hoarding can also lead to damaged floors and walls. It can lead to bugs or mold, which cause additional damage.

The bottom line is you do not want a hoarder renting one of your properties. It leads to a very expensive move out when the apartment will need emptied, cleaned, and repaired before it can be rented again.

What can you do to prevent a hoarder from damaging your properties?

This one is difficult because you do not know when meeting the perspective tenant that they are hoarders. We work hard to help our landlords avoid having a hoarder take over a property. We do that in two ways.

  1. Careful screening. Screening for hoarding is not as easy as screening for other issues. It is not something that will show up on a credit or criminal background check. What we do is get the contact information for a couple of their previous landlords. While this is not a foolproof approach, it helps in avoiding the situation altogether
  2.  Three-month inspection. Three months gives a new tenant time to get settled in their new home. If there are hoarding issues, they will likely start to show by three months. Identifying the problem early gives us the opportunity to work with the tenant to set cleanliness expectations and to follow-up to ensure the mess is handled.

Again, there is no sure-fire way to avoid having a hoarder damage your property. However, through careful screening and follow-up inspections, you can mitigate the risk and hopefully reduce or eliminate any damage to your property. We freely do this for all the property owners. It is always our goal to provide them with the most stress-free and cost-effective experience possible.

Dealing with a hoarder is a situation where before and after video inspections may become highly critical to establish the extent of the damage caused to the property. Watch for our upcoming post on the value of video inspections.

Our experienced investment property management team can relieve you of the burden of managing your rental property while saving you some serious money! Call us today at (440) 220-7300 to see how we can help you!

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