Renting out a property has the potential to be a lucrative endeavor, but there are many to-dos to cross off your list before you start taking in tenants.

With rental vacancies low and rates climbing, renting a property might seem like a lucrative opportunity in today’s market. But before you get into the rental game, you need to have a rental game plan.

Below, our licensed property manager’s share tips on getting started with your rental.

It’s a Time Commitment

“Depending on how many units someone wants to manage, it’s definitely a big time investment.”   People often underestimate the amount of time it takes to be a landlord.

Even when it comes to evicting a tenant, local, state or city regulations may permit a tenant to stay even when rent money is owed, says Tom Barron – who has dealt with difficult evictions more than once.

Whether or not you use a property management service, screening and finding new tenants, dealing with leases, managing repairs and collecting rent all take YOUR time.

Have a Financial Plan in Place

“You have to analyze this like any investment.”  The key is knowing and understanding how to analyze real estate, which a licensed agent or financial adviser can help, Barrons says.

Identify your long-term goals with the property and your expectations for appreciation, revenue and expenses.

Barrons advises putting aside 20 percent of annual rental income as a “rainy day fund” in the case that you are faced with a costly repair to your property.

When Finding Tenants, Do Your Homework

Run credit checks on all applicants and check their references of past landlords.

“Most individual owners don’t have the ability to run credit; they don’t know how to call and talk to a landlord.  A number of online credit-check services are available; most require a one-time or subscription fee.

Finding new tenants can be a time-consuming process and is an important consideration to take before renting your property.

Research Your Local Market

If it’s a neighborhood heavy in rentals, go on several rental sites – we also have access to the (MLS) multiple listing services and see the rental price of comparable units. On the other hand, if your property is in an area with a lot of homeownership, talk to a real estate agent about what people are looking for in the market and what’s important to them.

“Getting that first-hand knowledge will definitely be helpful as a person looks to either buy a rental unit or convert something they own to a rental unit.”

Get Legal Advice

If you’re a first-time landlord who has no prior knowledge of legal contracts and leases, sit down with a real estate attorney.  Make sure to have him or her recommend a contract that can be enforced, in the case that there is a tenant violation.

Use a Property Management Service

The easiest way to combat making fatal first-time errors is to hire a property-management service. From maintenance and repairs to credit checks, a good property manager can lessen the burden of landlord duties.

These services don’t come free. An average fee for property management is 10 percent of the annual rental income.   HOWEVER, Barrons motto is  – If you think hiring a Professional is expense, wait till you hire an amateur.

If you are interviewing property managers, please include us at: www.BarronsPropertyManagers.com or call (850) 934-2588

The decision to use a property management company to manage your investment property versus managing the property yourself can often times be a difficult one. Even if you feel that you cannot afford the services of a property management company you should think twice and take a moment to interview with a company to see what they can do for you. You may find that it’s cheaper to go with a property management company for both financial and mental health reasons. Tune in next time on all that we do, so you don’t have too!

If you ever wanted to live on the beach, now is the time.  We have a few condo rentals that will go fast – these are still priced reasonably but going up year by year.  Now is the time!

Gulf Breeze Chambers breakfast meeting at Andrews Center. Great presentation put on by Karen Sendell of the National Flight Academy. What a great asset for our city!

Pensacola’s fall season is a little different than most, but we still need a few tips;

5 Fall Safety Tips

CHECK THE CHIMNEY: Inspect your chimney to make sure it is unobstructed. If you will be burning wood in a fireplace, have the chimney inspected to make sure it is in good condition and free of creosote buildup.

KNOW WHERE THE SHUT OFF IS: If you are traveling this Holiday Season, turn off your water. A flooded home can be prevented by turning off the water supply.

NEVER HEAT WITH AN OVEN: On chilly autumn mornings, avoid the temptation to warm the kitchen with a gas range or an open oven door. This is a common cause of kitchen fires.

WATCH SPACE HEATERS: Be cautious with portable heaters or space heaters, making sure to follow manufacturer instructions for safe venting and use. Place them at least three feet away from any combustibles, such as wallpaper, bedding, draperies, clothing and furniture. Never leave them operating when you are away from the room or asleep. Don’t leave children or pets unattended with space heaters, and never use them to dry clothing, shoes or mittens.

LIGHT FOR SAFETY: As days grow short, make sure outdoor lighting is in good working order. Good lighting can protect you against crime and falls or accidents caused by darkness. Inspect fixtures and outlets for weather damage and replace burnt-out bulbs.

The decision to use a property management company to manage your investment property versus managing the property yourself can often times be a difficult one. Even if you feel that you cannot afford the services of a property management company you should think twice and take a moment to interview with a company to see what they can do for you. You may find that it’s cheaper to go with a property management company for both financial and mental health reasons. Tune in tomorrow on how we offer Peace of Mind!

Pensacola Florida is adding things to do in downtown – thumbs up!

Today is a day to honor and remember those who have died while serving our country. It does not matter if you are a Republican or a Democrat. Today, we are simply Americans who love our country and are thankful that it is still free. However you are celebrating this year, we hope that you stop to remember those who have fallen for our freedom.

The residential real estate investment in property management markets are both large and growing. 65% of individual investors plan to purchase additional properties in the coming year Lots of people think managing investment property is simple it’s not you not only have to know how to manage an asset but also tenants contractors attorneys and vendors as well whether you’re a Rental property mogul are renting  out your current home because  you can’t sell it Barrons property managers expanded set of products will help you grow and protect your investments.