What is Covered Under Home Warranty Plans?

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Many purchases that you make come with the option to buy a warranty in the event that the product is damaged, such as small appliances and electronics. This helps cover the cost of repair should they break down so you’re not paying out of pocket.

Warranties also apply to home purchases and offer buyers some peace of mind knowing that the major components and systems of the property are covered in case something goes wrong after you take possession. While they’re certainly not mandatory to buy, home warranties can help alleviate any concerns that you might have about anything malfunctioning in the home, and will be of financial assistance should anything go awry.

That said, it’s important to understand exactly what is covered under home warranties before you buy into one, as not necessarily everything under your roof will be covered.

The specific coverage offered will depend on the plan that you choose and the items you want to be covered, as all home warranty plans differ. The warranty company that holds your policy will replace or make any necessary repairs on any covered item that breaks down as a result of normal wear and tear according to the plan’s terms.

It’s critical for homeowners to fully understand precisely what is included in the home warranty in order to avoid the disappointment of a rejected claim.

That said, certain items are typically included in basic coverage, including the following:

• Electrical system components

• Plumbing systems

• Ovens and stovetops

• Dishwashers

• Built-in microwaves

• Water heaters

• Exhaust fans

• Sump pumps

Of course, homeowners may opt to upgrade their coverage in order to have more items included in their home warranties, such as:

• Air conditioner units

• Refrigerators

• Washers and dryers

• Central vacuums

• Pools

• Hot tubs

• Garage door openers

• Septic systems

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Have Your Home and its Components Inspected Before Taking Out a Policy

If there’s something wrong with any one of the components in your home that you want covered, it’s possible that the warranty company you’re with will refuse to approve your claim. They’re covered under what’s known as a “pre-existing condition” clause that basically states that the company will not cover any component that already had an underlying condition.

In order to avoid the frustration of having your claim denied, it’s advisable to have your home and its components inspected first if your warranty does not cover pre-existing conditions.

What Constitutes a Denied Claim?

A pre-existing condition isn’t the only thing that could result in a rejected claim. Other issues that could leave you empty-handed include inadequate maintenance, improper installation, excessive and unnecessary wear and tear, and violations of building codes. Make sure none of these apply to you before you attempt to file a claim for a malfunctioning component.

Isn’t a Home Warranty the Same as Homeowner’s Insurance?

After reading about what home warranties are, you might be wondering how they differ from homeowner’s insurance plans. Granted, they do sound somewhat similar, but they’re certainly not the same thing. 

Home warranties are designed to protect the systems and appliances of homes from any malfunctioning that is caused by normal wear and tear. On the other hand, homeowner’s insurance covers damages and loss as a result of issues out of your control, such as fires, natural disasters, or theft. They don’t cover anything that simply breaks down after normal use. That’s where a home warranty enters the picture.

The Bottom Line

It’s always important to look over your home warranty policy in great detail to understand exactly what items in your home will be covered. If you want more coverage for additional items that are not part of your basic policy, you’ll need to pay extra for these to be included. Even if you currently have a home warranty that you’ve been paying for every year, you should still look it over in the event that your coverage changes.

Tips to Identifying Issues That Sellers May Be Trying to Keep Hidden

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When you’re visiting several homes in search of the perfect one to put an offer on, you’re not just looking at the layout, esthetics, and size of the home and surrounding property. While these components are certainly important, it’s essential that you keep your eye out for potential issues with the home that could leave you with big, expensive problems on your hands.

Most sellers are rather forthcoming about known issues with their properties and are actually under legal obligation to disclose problems to prospective buyers. However, some sellers may not be aware of problems with their homes, or may even go so far as to disguise them. In fact, many real estate disputes stem from the failure of sellers to fully disclose issues with their properties. 

Here are some issues with homes on the market that may be camouflaged, and how to spot them.

Water Damage

Not only are water stains unsightly, they’re also a hazard. Unfortunately, many buyers aren’t able to spot issues related to water damage right off the bat. It’s not that difficult for sellers to camouflage the damage that stems from water leakage through savvy decorating and staging techniques. While sellers are obligated to disclose these problems, you’d be well advised to try to spot them on your own first.

When scoping out the home, try to move piles of boxes and other large items that are usually stored in the basement, which is typically where a lot of moisture damage can be found and hidden. Bring a flashlight with you and shine the light around the perimeter of the basement, making sure to check out the floor, ceiling, and walls. If you notice any stains, musty odors, or even wall cracks, these could be signs of water damage.

Sellers may also be able to conceal water damage by giving the walls and floor a fresh coat of paint. Ask the seller when they painted last. If it was very recently, it’s possible that there may be something to hide. Your home inspector may be able to uncover any issues. If not, a specialist may be called in to verify.

Faulty Foundation

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It would be tough for sellers to hide problems with the foundation, but some try to minimize the extent of such damage. Again, paint is often the easiest way for sellers to keep issues hidden from sight. But if you spot any paint work that seems a bit uneven around window and door frames, you may want to take a closer look to identify if there are any cracks in the wall, as these can translate into expensive and time-consuming repairs.

Another hint that there are problems with the home’s foundation is if you notice any doors and windows that “stick” when you try to open or close them. Further, if you place a ball on the ground and it starts to roll in any particular direction until it hits a wall, odds are the foundation is sloping, which could be a sign of major trouble.

Temperature Imbalance

If one bedroom in the home is very warm while another is very cold, it’s possible that the house has been poorly insulated. Any imbalances in temperature from one room to another should be investigated further by your home inspector or an insulation specialist. Sometimes this situation may have resulted after the addition of a room or floor to the home. If previous work has been done on the home, you may want to find out if the necessary permits were obtained.

Poor Drainage

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Proper drainage is critical for protecting a home from water damage. The key to proper drainage is not impossible to understand: essentially, water should be flowing away from the exterior of a home. If water pools in large quantities close to the home, major problems can arise.

When visiting a home you may be interested in buying, make sure to spot signs of inadequate drainage. For starters, look for patches of soggy, flooded grass around the perimeter of the home. Check to see if the dirt next to the foundation is sloping away from the home. If the property’s grading slopes toward the house, water can make its way into the house and damage the structure.

Scope out the rain gutter downspouts and make sure they drain directly to the ground. If there is a low spot for water to collect next to the home, it’s highly possible that water is making its way in somewhere. In addition, look at the water flow in the downspouts to make sure there are no blockages that would prevent water from easily moving away from the home. See if the gutter downspouts bring the water a minimum of 10 feet away from the structure. If not, that’s an issue that will need immediate attention.

Termite Damage

Termites can wreak havoc in a home, particularly in the floors, drywall, and structural supports. Unfortunately, damage from termites can be tough to spot since much of it is typically hidden. Older homes are more susceptible to termite infestation and damage.

Sellers may try to hide termite damage by placing things such as wall art or area rugs over top of where damage exists. It’s important to check behind anything hanging on walls and underneath area rugs to check for signs of termite damage, such as holes in the drywall, bubbling paint, and hollow-sounding or sagging floorboards.

Leaky Roof

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A roof that has curling shingles offers obvious signs of potential issues that sellers wouldn’t be able to hide very easily. However, there can still be issues with a roof even if it looks fine from a visual point of view.

If the roof is deteriorating underneath the outer layer, a host of problems can creep up, such as water seepage into the home. Once interior leaks start happening on a regular basis, they can cause major damage to a home that will cost a ton of money to rectify.

Aside from damaged or even missing shingles, other red flags to look out for include moisture in the attic, decaying roof cement, sagging gutters, water stains or damage on upper floors, and signs of pest infestation.

The Bottom Line

It’s certainly much better to identify issues with a home before closing on a real estate transaction. When visiting a home on the market, be sure to keep an eye out for possible problems rather than just focus on its cosmetic features. Understanding what to look for can help you avoid potential issues before ugly disputes arise.

10 Ways to Create an Extravagant-Looking Bathroom (On a Budget)

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Flipping through home design magazines and catching a glimpse of some extravagant bathrooms can easily get you drooling over the possibilities for your own bathroom redesign. But with bathroom renovations easily tipping into the thousands, it can be tricky to revamp this important little space while sticking to your budget.

Luckily, there are plenty of ways to make your bathroom look posh without the hefty price tag.

1. Install Tiles Diagonally

While a little more complicated than laying them in a square fashion, tiles that are applied diagonally look a little fancier. Not only that, this type of tile arrangement can also make a very small bathroom appear larger than it really is. Just be sure to use the appropriate tile size in relation to the square footage of the space that you’re working with.

2. Add Colorful Glass Tiles

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There are tons of different types of tile out there for the choosing, but one you may want to focus on to primp up your bathroom is glass. You can use colored glass tile in all sorts of different ways to create a highly customized, artful look. With all the different colors that glass tiles come in, you can easily create a unique look that will be sure to appeal to the visual senses.

3. Line your Walls With Wallpaper

Wallpaper has made a splash on the home design scene over the past few years, offering homeowners a host of different patterns to choose from. Adding wallpaper to bathrooms, in particular, has become a popular trend, as the right pattern and color combination can truly being this understated space to life.

4. Swap Out Your Clear Shower Curtain

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Sliding glass shower doors are the ultimate in opulence, but if you don’t have the budget for them, the right shower curtain just might be enough to boost the luxury factor in your bathroom. Get rid of those typical plastic shower curtains in favor of silk or silklike curtains that can infuse an element of affluence in the space. You can even use curtains that are made for bedrooms, just as long as you add a fabric shower liner underneath to ward off the wetness.

5. Use Posh Accessories

Accessories can never be underestimated, no matter what room you’re using them in. You can easily create a luxe look by sprinkling your bathroom with opulent accessories such as candles, perfume bottles, soap dispensers, and others to make your bathroom look fit for royalty.

6. Hang an Exciting Mirror

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Nothing brightens up a space more than the reflective properties of a mirror. To give your bathroom a luxurious boost, hang an oversized mirror in an interesting frame that takes up the majority of the space on the wall that it’s hanging on. Install a couple of wall sconces on either side and you’ll really have something that will stand out and enhance the richness of the room.

7. Decorate in All White

If you’ve looked through home design magazines or stayed at 5-star hotels, you may have noticed that the more expensive-looking spaces are those that are spa-inspired. These bathrooms tend to have a monochromatic look that exudes feelings of luxury. Typically, an all-white bathroom is used to create an elegant space. From the wall color, to the vanity, to the linens, all white in the bathroom provides the feeling of richness despite its incredible simplicity.

8. Add Extravagant Lighting

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Don’t underestimate the power of good lighting. One of the easiest and fastest ways to introduce extravagance into the bathroom is to install gorgeous light fixtures, particularly a chandelier. This type of light fixture can make a dramatic impact in the room without occupying any space, which is important when dealing with small areas like the bathroom.

9. Use Luxurious Towels

Linens play a huge role in bathrooms, so don’t cheap out on them if you’re going for a luxurious look in this space. Get yourself some towels made of plush fabrics that are adorned with extravagant details.

10. Add Painted Wainscoting

The addition of wainscoting on the walls in your bathroom can instantly give the space an enhanced look. For this project, you might need to enlist the help of a contractor to make sure the job is done right. Once it’s up, paint the wainscoting in a neutral color, such as white, grey, or steel blue to completely change the look and feel of your bathroom.

The Bottom Line

Who says you can’t have luxury in your bathroom without spending a pretty penny? With these crafty ideas, you can take your bathroom from outdated to opulent in no time, without making a dent in your wallet.

Tips to Counter a Lowball Offer on Your Home

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As a seller, getting an offer on your home is exciting, especially if it comes soon after listing your property for sale. But just because there’s an offer on the table doesn’t necessarily means it’s going to be a good one. Unfortunately, lowball offers happen, more often than sellers would prefer.

Obviously, you want to get the highest bid on your home and walk away with the most money in your pocket. But what happens if you’re lowballed? Should you throw the offer out or counter it?

If you choose to disregard a lowball offer altogether, you’ll have to wait until another offer comes in. Otherwise, you can consider countering the lowball offer in hopes that you’ll be able to get the buyer to inch their price point up towards what you are hoping to get.

Here are some tips to countering a lowball offer on your home.

Keep Your Emotions in Check

It’s easy to get rattled by a lowball offer on your home. This is a place that you cherish and one that you may have spent years raising a family and creating memories in. To have someone offer you a price that you believe is much lower than what it’s worth can be insulting and offensive. However, it’s important to remember that selling real estate is an emotionally-charged process that can often involve letting feelings get in the way of the end goal.

Rather than automatically getting upset with the buyer for offering a low price on your home, take a deep breath and don’t let your emotions get the best of you. Instead, consider where the buyers are coming from. Remember that this is not their home – yet. They haven’t built up the memories that you have. To them, it’s just a house with four walls. And while some buyers can certainly be callous with their lowball offers, others may not have any malicious intentions. 

At the end of the day, it doesn’t matter what the starting point of the negotiations is. What matters is the end result.

Remember That You’re in the Driver’s Seat

Receiving a lowball offer on your home can definitely be unsettling, but you need to remember who’s really in control – you. Just because you’re lowballed doesn’t mean that you have to accept it. Remember that you are the boss when selling your home. Regardless of whether an offer you receive is a lowball or a strong one, you have the power to make the decision about what to accept and what to leave by the wayside.

Review All Other Terms of the Offer

The offer price is certainly a critical factor on an offer that you receive, but there are other terms on the contract that should be looked at before you lose your cool on a lowball price. Make sure you’ve looked over all of the buyer’s terms before tearing up the contract, such as the following:

• Closing date

• Deposit amount

• Requested repair credits

• Contingencies

• Type of financing the buyer will be getting

• Down payment percentage

• Personal property to be included

It’s possible that most of these terms will be favorable and can help ease your mind about the offer altogether. Just keep these terms in mind when assessing the overall contract.

Reassess Your Asking Price

It’s possible that the offer you’ve classified as a lowball may actually be more in line with your home’s current market value than your listing price.

Before you even put your home up for sale, it’s critical that you list it at a competitive price that’s congruent with what the current market in your area dictates. Don’t price your home so high for the sole purpose of leaving some wiggle room for negotiations. Doing so will only scare off qualified buyers who would have otherwise put in a fair offer on your home.

If you do price over market value, some offers that you might get may seem far too low compared to your asking price, when in fact they may actually be closer to market value than your listing price.

If your home has been sitting on the market for quite some time, you might want to have another look at comparables in your area to see how much similar recently-sold homes in your area have sold for. The housing market never stands still and is always changing, which means prices can change right along with it in either direction. Maybe the listing price you’re at is no longer in line with today’s market.

Counter Appropriately

As mentioned earlier, don’t just tear up a lowball offer right off the bat. Instead, consider countering it. You just never know where the deal will end up.

When countering a lowball offer, you’ve got some options as to how to respond. For starters, consider countering with the absolute lowest price that you’d be willing to take. This approach can help avoid countless back-and-forth bantering.

Another way to go about responding to the offer is by countering back to the full asking price. This will show the buyer that you are serious about the price you’ve listed your home at and are not interested in entertaining any offers that are not serious. Just keep in mind that this approach could potentially intimidate or discourage the buyer from carrying on with any further negotiations.

The Bottom Line

It’s important to understand that you may be able to effectively reduce the odds of getting hit with a lowball offer if you price your home right from the get-go. That said, if you do receive a lowball offer, make sure you keep your cool and respond with a counter offer that will be more likely to get you closer to a price you can live with.

How Do BPO’s Determine the Value of a Home?

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Plenty of factors impact the value of a property. From its location, to its size, and everything in between, a home’s value is determined by a multitude of components, and bank appraisers will come up with this value according to current market conditions before a sale is made.

Sellers will want to know how much to list their properties for, and buyers will want to know what a fair offer price would be on a home they have their eye on.

But how exactly do banks determine the value of a property? Many times, a “BPO” is ordered for this purpose.

What is a BPO?

A BPO stands for “Broker Price Opinion,” which is a report that a real estate broker prepares for banks that provides their opinion of the value of a property in a given market.

After the housing crisis of 2008 when millions of foreclosures and short sales occurred, BPOs became very important and highly used in the industry to establish approved short sale prices and minimum bids for foreclosure auctions. However,  many different companies order BPOs as well in order to come up with a loan-to-value ratio for a refinance or loan modifications.

Why Do Banks Request BPOs?

Banks request BPOs in order to have a property value estimated for a variety of reasons, most importantly to determine how much equity they may have in a specific property. Combined with Automated Valuation Models (AVM) that can be used to determine a rough estimate of a property value, BPOs can give banks a sufficient estimate of how much a certain property is worth.

Two of the more common reasons for BPO requests is to obtain the value of a foreclosure or short sale. Determining the value of a property can help a bank to steer clear of lower values that can sometimes be placed on short sales.

That said, the value obtained from a BPO isn’t taken as actual market value. Instead, banks use the value provided by the BPO to gauge how much they can expect to get back after the short sale or foreclosure process has been completed.

What’s the Difference Between a BPO and an Appraisal?

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The process of a BPO is similar to a typical real estate appraisal. The real estate broker who is preparing the BPO will compare at least three similar properties that have sold over the recent past to the subject property. The value is then adjusted based on any differences between them.

However, the two are different in that an appraisal is performed by a licensed appraiser while a BPO can be prepared by any real estate agent, include newbies. BPOs are also typically cheaper than appraisals because they are usually much less complicated than a typical appraisal, the latter of which involves a full interior inspection, square footage measurements, and floor plan sketches.

What Criteria Do BPOs Use to Determine the Value of a Home?

The comparable properties that are part of the BPO must meet a number of criteria when comparing them to the subject property.

• Date sold – Ideally, comparables should have been sold no more than 6 months earlier.

• Distance – All comparable properties should be located within 1 mile of the subject property.

• Property type – Only the same style and type of homes should be compared to the subject property. For instance, if the subject property is a two-story detached home, then the comps should be the same.

• Age – The age of the comps and the subject property should be within 10 years of each other. However, if the home is over 50 years old, this range can expand somewhat.

• Size – The square footage of the comparables should be no more than 2% larger or smaller than the subject property.

• Number of bedrooms and bathrooms – These figures should be the same between the subject property and the comparables.

Once the real estate agent has collected the appropriate comparables based on the above criteria, the necessary adjustments are made against the subject property. These adjustments are made to the comps to identify whether they are inferior or superior to the subject property.

Any negative features of the comps compared to the subject property would result in a lowered price adjustment, while positive features would result in a raised price adjustment. Once all adjustments are made, a new price will be arrived at that essentially dictates what the subject property would be worth in the current market.

The Bottom Line

While BPOs certainly look like appraisals, they’re not nearly as in-depth. As such, they are usually not taken as true market value of a subject property and are instead used by banks to get an idea of what it might be worth, particularly short sale and foreclosure properties. This gives banks some insight about whether or not they would walk away with any monies from the proceeds of a sale, or if they would be taking a loss.

10 Unique Materials to Use For Your Kitchen Backsplash

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Today’s modern kitchen backsplash is no longer limited to the traditional types of materials. These days, the options for backsplashes are seemingly endless and provide a plethora of choices for homeowners to create a truly unique kitchen space.

Here are 10 unique types of materials that are increasingly being used to create stunning backsplashes in kitchens across the country.

1. Wood

Wood doesn’t just have to be reserved for flooring. These days, homeowners and interior designers are getting crafty with their backsplashes and are incorporating this natural material in this part of the kitchen. Wood is not only attractive, it’s also able to warm up a kitchen that has man-made materials, such as stainless steel on the appliances or ceramic tile on the floors.

2. Wallpaper

Considering the seemingly endless number of designs and colors that wallpaper offers, you can create a truly unique backsplash by adding a roll to this small but critical space in the kitchen.

3. Mirrors

A great way to brighten up the kitchen is to add some reflective mirrors in the space, especially if the kitchen is on the small side. Mirrors not only brighten up the area, but they also make a room feel even bigger than it really is.

4. Stamped Concrete

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Concrete is not a material that is necessarily reserved for outdoor spaces. Savvy homeowners are introducing it to their interiors as well, including their kitchen backsplashes. By embossing the concrete to include some patterning, this material can create an exclusive backsplash you won’t find in any other home.

5. Tin Sheets

Tin sheets can come in all sorts of patterns, and they make a great material for backsplashes to create visual interest and make this area pop.

6. Stainless Steel

This material has long been a favorite in kitchens when it comes to appliances, but stainless steel is now being looked at for backsplash surfaces as well. Perhaps it might be overkill to add a stainless steel backsplash if the appliances are already covered in the same material, but contrasting it with white or black appliances and dark cabinets can make for a very sharp kitchen space.

7. Finished Bronze

Bronze hasn’t played a major role in the world of interior design over the recent past, but it’s steadily making some strides. This material can be used for a variety of applications in the home, including kitchen backsplashes, especially when embossed with a decorative pattern.

8. Chalkboard

Nothing lets you change up the look of your backsplash on a daily basis like chalkboard. Whether you want to post a recipe to easily follow, write your grocery list for this week, or simply draw on it for fun, chalkboard lets you do just that. As soon as you’re done with what’s up there, just wipe it down and you’ve got a clean canvas to start from scratch on.

9. River Stone

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An increasing number of shower floors have been infused with river stones, but this type of unique and attractive idea can be applied to other surfaces in the home, including the kitchen backsplash. Not only do river stones that are applied in a decorative manner look great, they’re easy to install too.

10. Brick

Another material that can be used indoors is brick. In fact, exposed brick inside the home is thought to be very modern and attractive, so why not carry on this look on kitchen backsplashes?

The Bottom Line

The sky’s the limit in terms of the types of materials that you can use for your kitchen’s backsplash. One thing’s for sure: a beautifully designed backsplash can provide an instant update in the look of a kitchen. Carefully choosing the right type of material to complement your kitchen cabinets and countertops can easily take the space from drab to fab in no time.

How to Pick the Right Property Management Firm For Your Investment Property

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If you’ve only got one or two rental properties and live close by to them, maintaining them is not really a big deal, if you’ve got the time. However, if you’ve got a few properties on the books or aren’t located anywhere near them, hiring a property management team is a necessity.

That said, you don’t necessarily want to hand over the keys to just anyone. Instead, the property manager that you hire needs to assure you that your properties are in good hands and will be cared just as carefully as if you were doing it yourself.

The following are the characteristics that the right property management firm should possess before you leave your unit in their care.

They’re Experienced

Ideally, the property management firm that you choose will have a long track record of successfully managing investment properties. The best way to find out what their experience is like is to ask a lot of questions.

For starters, what types of properties have they managed before? How many properties are they currently managing? How long have they been in the business? The answers that they give you will provide you with a much better idea of what type of experience they have and whether or not you feel they would be able to effectively manage your property.

They Visit Their Properties Often

Investment properties need to be kept tabs on regularly, which means frequent visits are warranted. The property manager who you hire should be visiting the property at least once or twice a week to make sure all is well and to be able to catch any issues before they become major problems.

For this reason, it’s important that the property management team is not so overwhelmed with properties that they don’t have the time to make such frequent visits. At the very least, their staff should be adequate enough to cover all the properties that they have on the books so that you are able to receive the personal touch that your property requires.

They Know How to Effectively Market Rental Units

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Hopefully, your unit won’t experience a high turnover rate that leaves you scrambling to find a new tenant often. That said, you should still expect to have to deal with vacancies from time to time, which means you will be depending on effective marketing tactics to ensure the unit is filled in a reasonable amount of time. The longer the unit sits vacant, the more money it will cost you.

Part of the many tasks that property managers are responsible for is filling vacant units, which means they need to market the property effectively to attract the right tenants. In addition to marketing on various platforms, the property should be presented in an attractive light. That means quality photos should be taken, an attractive description should be drafted, and the posted rental rate should reflect the current market. A successful property management team will be able to tackle these tasks with little issue.

They Make Use of Current Technology

These days, a big part of the success of property management is making use of innovative software. Not only does technology make the job of the property manager easier, it also makes it more effective.

Plenty of tasks can be simplified and streamlined with the use of technology, including collecting rent, marketing vacant properties, requesting maintenance and repairs, and so forth. Renters themselves can communicate with property managers digitally, making it much easier and faster to have questions answered. Renters certainly appreciate that, especially the technologically savvy millennial generation.

Their Fees Are Fair

The fees associated with property management is fairly standard across the board. That said, it’s still a good idea to compare rates with other property management firms to make sure what you are quoted is reasonable and falls in line with the industry standard. Generally speaking, property management companies charge somewhere around 10% of the monthly rent. The rate can fluctuate slightly in either direction depending on the type and size of the property.

There are also extra fees that you may be asked to cover, such as lease renewal fees, maintenance costs, tenant finder fees, and others. Your best bet is to find out what extra fees you will be charged for on top of the regular management fee so you’re aware of how much it will cost you to have your property managed by a third party.

Their Renters Are Happy

A good way to gauge how well your investment property will be managed is to see how satisfied the residents of some of the properties that they currently manage are. If the tenants are happy, the property management team most likely is treating them fairly and taking good care of the property.

The quality of the tenants also speaks volumes about how good the property management firm is at their job. Finding good quality tenants is a critical component to a successful investment property. They’re much easier to deal with and are more likely to pay their rent on time.

Bad tenants, on the other hand, can be a real nightmare to handle and can end up being costly. If the property manager is able to find solid tenants for other investment properties that they manage, they’ll be more likely to find good ones for you too.

The Bottom Line

Managing an investment property is a big deal and requires plenty of time and effort to ensure everything runs smoothly. From marketing a vacant unit, to collecting rent checks, to dealing with tenants inquiries, owning and running a rental unit can be a hassle.

Luckily, you can hire property managers to deal with all of that work for you, especially if you’re nowhere near the property, or if you simply don’t have the time nor the desire to do so on your own. But before you pick a property management company, do your due diligence to make sure you select the right one. Looking for the above traits can help you pick the ideal firm that will leave you with some peace of mind knowing that your unit is in good hands.