Hawaii Property Management
Wondering how to make money in this market? Consider a rental property.
The slump in housing together with very low interest ratess make conditions ideal for investing long-term in a rental property. You must do your homework first!
According to Myrna Matsumoto, vice president of the property management division at Prudential Locations, there is a good supply of rental units available for purchase, resulting in a 'renter's market' and rents are less than they were because of the
more inventory, so don't expect to cover all your operating costs immediatly.
"There is an excess of homes for sale because units cannot be sold rapidly in our current market, so owners look at rental options
to ease their cash flow and maybe to wait for the market to come back up," she says. "This results in an increase in available rental units,
thus rental values are driven down."
Add to that job losses and credit issues, which prompt some renters to go back home to live with parents or relatives or sharing houses to
reduce living expenses.
For landlords, the downturn in the economy means prolonged vacancies, higher delinquencies, lower rental values as well as fewer
qualified renters.
"It is harder for potential renters to qualify as they often have poor credit ratings, lack of sufficient income ..." says Matsumoto. "Today,
renters could also be former homeowners who have lost their homes through foreclosure."
If you are looking for a Hawaii rental,
there are many available at
http://www.pruhawaiirentals.com
Vacancy time in between tenants are averaging four weeks due to the fact that it takes processing at least three applicants before finding one
qualified tenant. Good tenants are sometimes hard to find as some of them are moving back to the mainland because they lost their job or
they're moving back home.
"If a landlord works with us and allows us flexibility in the listed rental amount, the vacancy time can be cut in half," Matsumoto says.
"Landlords holding out for higher rents will see vacancy times of more than 30 days and possibly up to 60 days."
One of the biggest mistakes a landlord can make is to rent to the first person who calls on a property, yet, in a slow market, Matsumoto says
that's exactly the mistake many make.
"In a down economy, landlords become desperate and often resort to tactics that will undoubtedly get them into trouble," she says. "Renting to
the first person who walks through the door is unfortunately one of the most common mistakes made by landlords. While it cuts down on vacancy
time initially, the long-term effects are generally not recoverable, such as property damage, months of unpaid rents, legal costs for
eviction, potential violations of landlord-tenant laws and fair housing laws ... We hear these horror stories daily as desperate landlords
contact us to bail them out."
Screening for qualified and eligible tenants is just one of the tasks a professional property manager will handle for landlords. Because
property management is their full-time job, they not only know how to wade patiently through the risky prospects to find the more qualified
one, but they also are prepared to handle service calls in the middle of the night/ on weekends, they know how to deal with difficult or
demanding tenants, collect the rents, maintain records for tax purposes, they coordinate repairs and maintenance, even passing on to property
owners the bulk rate discounts received from reputable vendors property managers frequently use.
"Landlords must keep their investments in top condition," adds Matsumoto. "In a renter's market, the qualified potential renter can be picky.
It's vital that the property shows well and has a fresh curbside appeal."
Your average landlord can't come close to doing the job as efficiently and as effectively as a professional property manager.
Investing your money in real estate is a smart move, only if the numbers crunch out and you think the process through. Taking advantage of a
down market and low interest rates makes sense, as long as you know what you need to do to get your property rented and keep it rented. When
rents start to rise again, and history tells us they will, a rental property can provide you with cash flow down the road.