Rental property owners may be spending too much time and money on maintenance, according to Real Estate Economy Watch’s Steve Cook, who recently told CNBC that individual owners and investors are responsible for managing the bulk of the nation’s single-family rentals.
Out of about 8.7 million such properties, Cook indicates, only 20 percent are managed by professionals. Of the rest, about 35 percent are profitable. Having a skilled rental manager on hand may make the difference.
Investor Geoffrey Jacobs noted that good management can be key to convincing tenants to stay in a property, minimizing vacancies and improving profitability. Some of the renters opting for single-family homes are households who have suffered credit deterioration and need time to improve their credit scores and histories. They may see renting as a temporary but long-term measure until that is complete, Jacobs noted.
For investors interested in buying foreclosed homes, Jacobs told the news source that failing to carefully select rental management can result in losing money in a number of small ways that add up to impede profitability.