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Is Keyrenter a good fit to manage my rental property?
This is a question that you may have as you’re exploring different management solutions. We want to help set a good expectation between you and us to see that this is a successful relationship. We are not a perfect fit for everybody with their investments, and not everybody is a perfect fit for us. So we wanted to clarify some things and make sure that we can set this relationship up to succeed.
The first one is that I want to be a passive investor. If you’re saying this to yourself and this is what you want, then we may be a good fit for you. What does this mean? Not hands on and involved in the day to day. You don’t need to know everything that’s going on between the tenant and us, you don’t want to be the landlord, which is why you are paying money to a company to be the landlord, to oversee things, to see the things are going well, but you want to have a good return on your investment. You know that you had, there’s many benefits to having a rental property but you want to focus on what you do best, your career, your area of expertise, and hire out the professionals to manage the property.
The second one is that I do not want to manage the property, again, communicate with the tenants, or do my own maintenance. Very similar to the first one, wanting it to be a passive investment where you’re not communicating with the tenants, that you’re allowing us to communicate with them, setting boundaries, setting expectations with them, so that we can manage according to our written processes and our training the property managers go through, so that it can be a successful relationship with the tenant, as well as hiring our licensed and insured contractors with preferred rates, and of course you can see our maintenance rates if you’d like, so that things are being maintained and managed accordingly and appropriately.
I am planning on maintaining a reserve of three times the rent. Now this is a guideline for a successful rental. You have a reserve in place for larger repairs, if there happens to be any that you can see. Putting yourself in a position where if something does happen, and something will happen at some point in time, you’re prepared and you’re ready for that and it’s not a stressful situation, it’s just something that we planned on and prepared for.
I am planning on budgeting at least 10% of rents towards repairs and maintenance. Again, another way to have a successful rental is to budget and plan on roughly 10, it could be a little less, a little bit more, of your rents going towards maintenance, repairs, upkeep, those sorts of things. The reason why that’s important for us is because if something happens and there is a repair that we were planning on it and we know that it needs to be taken care of and we take care of things appropriately.
My property makes sense as an investment. Now there are properties that can be rental properties but they don’t really make good short term or long term sense. Now there are situations where you may have a job transfer and you need to move back to the home, maybe it doesn’t make the most sense and we can work with that, but we like it when our investors are aware of the returns or the losses that they could have with an investment. We can help you with that and helping you figure that out. If you have a question and if this property could be a good investment for 5, 10, 15, 20 years, we can put in some of our calculators and let you know what we think.I’m not emotionally attached to the property, and if I am, I will disconnect to treat it like a business. This is important. You may have lived in the property. You may have a strong connection with say the flowers and the flowerbeds or different things, but we’re putting tenants in this property that may not treat it the exact same way that you do. As long as we’re managing and we’re running it like a business where we’re looking for a return, we’re budgeting for some things that can happen and we disconnect emotionally, it’s going to be successful. If you’re emotionally attached to a property, we actually recommend that you sell that property and that you exchange it for a different type of property that maybe you have very little emotional attachment to.
All right, I hope this is helpful for you. We look forward to talking to you about your investment goals and your property that you have, or if you’re looking to buy one we’d love to help you out with that.