The Top 10 Pest Control Companies For Your Philly Rental

Posted on by Bay Management Group

Top 10 Pest Control Companies In Philly

Philadelphia is a huge city, filled with thousands of pest control professionals. And, since most pest control companies provide similar services, it can be difficult to know which one to hire.

That’s why we set out to research some of the very best pest control companies in the Philly region so you don’t have to.

We looked at things such as experience, reputation, reviews, and even cost to make sure you get the best service and deal possible, should you need to enlist the help of a professional pest control specialist.

In the end, we came up with 10 exceptional pest control companies for you to reference if you ever find yourself with a pest infestation in your rental property.

 

10 Pest Control Companies to Consider for Your Rental Property

1. A. Amendt

Founded in 1955, A. Amendt boasts being a family owned and operated pest control company that seeks to provide prompt, reliable, and consistent pest control management services. Specializing in termite, bed bug, and general pest control, A. Amendt employs highly trained technicians that are state-certified and ready to take on any pest infestation issues you may be having.

With A. Amendt you can expect the following:

  • Certified technicians on-hand that are up to date with the latest pest control technology and techniques
  • Dependable pest management that overcomes even the most difficult pest problems
  • Emergency and on-call pest services that come with thorough inspections and quick solutions

One unique thing that sets A. Amendt apart from other pest control companies, is the use of their trusted bed bug dog, Quincy. That, paired with free estimates, on-going, emergency, or single service plans, and professional technicians dedicated to keeping your rental property pest-free, guarantees that you can’t go wrong with A. Amendt.

 

2. The Aardvark Pest Management

Pest Control in Philadelphia

The Aardvark Pest Management specializes in pest control and extermination for healthcare facilities, educational institutions, offices, and residential properties, including rental properties. In business for over 20 years, the pest control professionals at The Aardvark Pest Management have the skills to eradicate any pest problem you have.

Here is what you can expect when hiring The Aardvark Pest Management:

  • Use of practical, pesticide-free solutions whenever possible in an attempt to remain eco-friendly
  • A perfect balance between pest identification and pest management skills
  • Aardvark founder, Marty Overline, is the only ACE Certified exterminator in Philly

With Overline also holding firm onto his position as Governor of the Pennsylvania Pest Management Association for Southeastern Pennsylvania, you can bet he ensures his employees have the highest levels of certifications and that their pest management education is ongoing. Aardvark is a state-of-the-art operation that stays on top of mastering the modern techniques of pest control.

 

3. Philadelphia Pest Control Solutions

For over 17 years, Pest Control Solutions has successfully eliminated termites, wildlife, rodents, roaches, and bed bugs. They are so great at what they do, they even receive recommendations from other pest control professionals in the area when facing difficult pests.

With Pest Control Solutions, you get:

  • A variety of extermination methods, depending on your individual situation
  • Termite inspections for both residential properties and real estate transactions
  • Affordable wildlife removal using the exclusion method and possible wildlife relocation

In the end, Pest Control Solutions offers rental property owners affordable and reliable removal services that will have your investment property pest-free in no time.

 

4. Green Pest Solutions

Green Pest Solutions understands that families live in the homes they inspect and treat. That’s why minimizing their use of harmful pesticides, and allowing Mother Nature to assist with pest removal is their main goal.

Green Pest Solutions’ best qualities include:

  • Over 100 years combined experience in the pest control industry, with technicians having certifications in multiple categories
  • Competitive pricing in the tri-state area
  • A 4.6 out of 5 star rating (or better) on review sites such as Angie’s List, Yelp, Home Advisor, and the BBB

Green Pest Solutions is a highly professional pest control company that hires only highly qualified extermination technicians to enter your rental property and rid it of annoying pests. The skill and expertise of Green Pest Solutions is evident in its many awards including 2016 Angie’s List Super Service Award, 2017 Best Pick for Post and Termite Control by Best Pick Reports, 2017 Philly.com Reader’s Choice , 2017 People Love Us on Yelp Award, and many more.

 

5. Ehrlich Pest Control

Hiring Pest Control Company in Philly

Ehrlich Pest Control employs 23 Pennsylvania-licensed exterminators with an impressive 300 years combined experience in pest control management. Understanding that Philly has a diverse pest problem, their highly trained specialists are equipped to deal with any pest issue, big or small.

With Ehrlich Pest Control, you receive:

  • Individualized pest identification and treatment plans to reduce the health and financial threats pests pose
  • Innovative pest control solutions tapping into the root of the problem, not just the surface solutions
  • The option to utilize their Pestfree365 plan, which involves regularly scheduled inspections and pest services for 365 days of pest-free living

As you can see, Ehrlich Pest Control offers customers a unique experience when it comes to pest control treatment. This, paired with the fact that their services list is a mile long, makes them one of the best pest control companies in the area.

 

6. Dynamite Pest Control

Dynamite Pest Control provides services that kill anything that “hops, skips, jumps, or flies,” as well as same day animal control, pest control services, and termite certifications (that come with a lifetime termite guarantee).

Additionally, Dynamite Pest Control will:

  • Service homes, schools, restaurants, and commercial properties, meaning their experience with pest issues is versatile
  • Pay special attention to the customer service provided, report all pest complaints and solutions you require, and even guarantee all work
  • Make time to service your rental property at all hours so that it is convenient for you and your tenants

Focusing on excellent customer service, teamwork, and affordability for nearly 50 years, Dynamite Pest Control is a great option when you have a pest control issue.

 

7. Absolute Pest Control, Inc.

Controlling Pest Problems Philly

Absolute Pest Control, Inc. offers 24/7 wildlife control, bed bug treatment, termite treatment, and bat removal services throughout the region. In addition, they specialize in the treatment of general pest infestations using environmentally friendly treatment solutions, thus minimizing the use of pesticides inside your rental property.

Absolute Pest Control, Inc. prides itself in:

  • Having a long list of services designed to eliminate your pest problem and prevent future occurrences
  • Providing flexible scheduling to meet the needs of you or your rental property tenants
  • Having professional, courteous, and timely technicians to identify the issue and solve your pest problems.

With years of experience in the pest control industry, Absolute Pest Control, Inc. ensures your pest infestations are handled as quickly as possible with the most affordable, eco-friendly treatments available.

 

8. JML Pest Control

JML Pest Control prides itself in using kid, pet, and environmentally friendly products when dealing with your rodent, bed bug, and general pest control needs. State licensed and insured, this pest control company employs technicians trained & certified by the PA Dept. of Agriculture and insists on continuing education to keep up with the latest treatment methods and chemical use.

JML Pest Control aims to:

  • Implement I.P.M. (Integrated Pest Management) by encouraging customers to take a proactive approach to pest control
  • Maintain the quality of service that garnered them the 2012, 2013, and 2014 title of Award Winning Service Provider in Pest Control
  • Recommend the bare minimum services required to solve your pest problem so that you don’t break the bank on excessive pest control and management

At JML Pest Control, you can rest assured your rental property will receive a thorough inspection, proactive and future recommendations, and their exclusive, award winning treatments every time.

 

9. Prodigy Pest Solutions

Prodigy Pest Solutions is a family owned and operated pest control company serving the Philadelphia region, with over 35 years of combined experience. Offering quick and reliable solutions, especially when it comes to bed bug problems, Prodigy Pest Solutions was aptly named “Best Bed Bug Removal Service” by Philadelphia Magazine.

What’s more, the specialists at Prodigy Pest Solutions can:

  • Handle other pests such as termites, ants, and roaches
  • Offer eco-friendly, fast, and effective bed bug removal services using Heat Treatments to time the different bed bug life cycles and eliminate them all
  • Provide guaranteed licensed and insured pest control services that you will be satisfied with

With a desire to exceed your expectations, and live up to their name as the best bed bug removal service provider in the area, Prodigy Pest Solutions is a great choice when looking for pest control services.

 

10. Resolution Pest

How to Find the Best Pest Control Company in Philly

Resolution Pest is a local pest control management company that is family owned and operated, and has decades of experience under its belt. Priding themselves in having extensive pest control knowledge, exceptional customer service, and effective preventative treatments, Resolution Pest is dedicated to keeping your home or business pest-free.

Resolution Pest’s best features include:

  • Board-trained, state-certified exterminators that have passed rigorous background checks
  • The exclusive Property Shield program designed to protect the perimeter of your rental property with quarterly inspections
  • Exceptional customer service including online bill payment, refer-a-friend programs, and online quote requests

With a 100% satisfaction guarantee, Resolution Pest is determined to work until you are completely satisfied that your pest problem is solved.

 

In Closing

Finding the right pest control company to take care of your rental property’s needs does not have to be hard if you know where to look.

And as you can see above, there are some great pest control specialists in the Philly region that handle a wide variety of pest infestation needs. From bed bugs to rodents, termites to garden variety pests, there is a company in our top 10 list that fits your needs and your budget.

What You Should Know Before Investing in a Rental Property

Posted on by Bay Management Group

Things to Know Before Investing in a Rental Property in Owings Mills

The current state of real estate purchases in the United States is showing that the trend to invest in rental properties is still going strong.

According to the National Association of Realtors, despite a recent dip in vacation home investments, investor sales in 2016 remained at 19%.

Buying a rental property, especially in the coveted region of Owings Mills, can be extremely lucrative. With a high livability score, plenty of entertainment and shopping, and relatively high-income residents, the chances of you scoring a high-quality tenant are good.

However, before you invest in an Owings Mills rental property, you should know a few things.

Investing in rental property can be extremely profitable, but that profit doesn’t come without its share of risks.

 

4 Things to Know Before Investing in an Owings Mills Rental Property

 

1. Whether You Can Financially Handle an Investment Property

Determine Whether You Can Financially Handle an Investment Property In Owings Mills

Purchasing a rental property is no small feat.

Not only do you have to finance the funds to finalize a property purchase, you need to have enough money to continue paying for your primary residence, and all associated costs of living.

In addition, you should have extra cash on hand to take care of any repairs or upgrades your investment property will need, as well as have an emergency fund stashed away that is to be used for your rental property business only.

Here are some key property management tips to becoming financially secure, and beginning the process of investing in a rental property:

  • Maintain a steady stream of income, even if your goal is to replace your 9-5 job with being a landlord
  • Save for a sizeable down payment, and factor in paying the mortgage for a certain length of time until you place tenants in your property
  • Lower all of your high interest debt, including credit cards and school loans
  • Enlist the help of a reliable financial planner to get your affairs in order
  • Have short and long term financial goals in mind, such as whether you will quit your day job, fund your retirement, or just earn extra cash on the side with your investment property

 

Understanding the state of your finances before investing in a rental property will prevent a lot of stress that results from an emergency happening, and finding you are strapped for cash.

 

2. How Much Rent You Can Expect to Garner

Before deciding to purchase the “perfect” rental property, experienced Owings Mills property managers suggest you research how much rent you can expect to ask from tenants you plan to lease your rental to.

In line with being financially stable before buying something as major as an investment property, this knowledge will help you understand what you can expect your financials to look like after you have purchased your property.

Consider the following as you conduct your research:

  • The location of your property
  • The local amenities you can advertise to prospective tenants
  • What similar properties are asking for in terms of monthly rent rates
  • The state of your property in terms of renovations and upgrades
  • The demographics of the region you are investing in

 

Knowing all of this beforehand will give you insight into whether your purchase price is reasonable as far as positive cash flow is concerned. After all, the whole point of investing in rental property is to make money.

 

3. The Value of the Investment Property

Know the Value of The Rental Property Before Investing in Owings Mills

There are many tips out there regarding the value of the investment for property owners looking to invest in rental property.

For example, some say that if one month’s rent is equal to or greater than 1% of the property’s value, it’s probably a good deal.

Others say that as long as the rental income is high enough to pay off the mortgage, and all property related expenses within 15 years, the property is valued at a reasonable price and you should invest in it.

However, what it all boils down to is how much income you can expect to collect each month in relation to the mortgage value.

Here are some key things to ask yourself about property value and income expectations:

  • How much monthly cash flow can you expect each month?
  • What can you expect to spend each month on the mortgage and expenses?
  • How much in excess fees can you expect to pay out – HOA fees, insurance, utility costs you are covering, landscaping services, etc.
  • If a tenant were to move out of your property, how long do you suspect you’ll have to cover the mortgage until a new tenant is placed?

 

Planning for the future will help you avoid costly expenses down the road.

After you determine the answers to all of the above questions, you will have a firm grasp on whether to move forward with your investment decision.

 

4. The Benefits of Using a Property Manager

Knowing before you invest in an Owings Mills rental property the advantages of enlisting the help of Maryland’s leading property management company is crucial to living a stress-free landlord life.

By employing an experienced, reliable property manager to handle the day-to-day tasks of managing your rental property, you will avoid the following costly mistakes:

  • Paying to advertise your vacant rental on poorly trafficked sites that garner interest amongst the wrong tenant pool
  • Legal issues that could cost thousands in court and attorney’s fees, as well as settlements
  • Placement of low quality, problem tenants that break the rules, don’t pay on time, and damage your property
  • Attempting to handle all maintenance and repair issues yourself, which could result in more costly issues, as well as a loss in personal time
  • Loss of security deposit because of improper collection, documentation, or use
  • High turnover rates because of a lack in communication and customer service
  • Missing rent payments because of unorganized collection procedures

 

Having a property management company, such as Bay Management Group, handle all of your property management needs, such as vacancy advertisement, lease drafting, rent collection, and tenant screening, can help significantly reduce your chances of losing money on your investment.

In addition, at Bay Management Group, we help with things like routine inspections to ensure your property is being cared for properly, around-the-clock maintenance and repair issues, complete with our own maintenance crew and list of reliable contractors, and even eviction proceedings should the unthinkable happen and you land in court facing your tenant.

So, contact us today and see how we can help you with your Owings Mills rental property.

5 Appliances That Receive The Most Tenant Damage

Posted on by Bay Management Group

Appliances That Receive the Most Tenant Damage in Your Takoma Park Rental

When it comes to the appliances you provide your Takoma Park tenants, you’ve probably included the basics like a dishwasher, refrigerator, microwave, and washer and dryer.

And, if you want to maintain an edge on the competition, chances are you are offering top of the line appliances that are environmentally friendly, modern by design, and of course, cost a pretty penny.

That said, it is extremely disappointing to find out at the end of your tenant’s lease term that those precious appliances you put into your rental property have been damaged.

Investing in appliances for your rental properties can help you command higher rent amounts and better quality tenants.

However, it is good to remember that not everyone is going to care for your appliances as well as you would.

And, since you can’t monitor your tenants 24/7, it can be tough to keep a handle on appliance care.

So, today we are going to take a look at some of the appliances in your Takoma Park rental that typically suffer the most tenant damage, and what you can do to minimize the damage in order to save you money in the long run.

 

Appliances That Take a Beating in Your Takoma Park Rental Property

1. Refrigerator

The refrigerator is probably one of the most used appliances in your Takoma Park investment property. That means that it receives a lot of attention on the daily, both good and bad.

Here are some of the things your tenant does that adds extra wear on your refrigerator:

  • Overfilling the Fridge and Freezer. Packing both the fridge and freezer with too many items leads to poor circulation throughout the entire unit. This makes the cooling fan have to work double time to keep things at the right temperature, meaning a burnout is more likely.
  • Dirty Condenser Coils. The coils at the back of your fridge are rarely, if ever, cleaned by your tenants. In fact, some tenants may not even be able to move the fridge to get back there and clean. However, if left for too long, these coils will have to work extra hard to provide electricity to the unit.
  • Water Filter Misuse. If your fridge produces filtered water, and the filters go unchanged for too long, the mineral buildup can ruin the entire system, and create poor quality water.

 

The key here is to remind your tenant of the steps they can take to prevent a fridge breakdown.

After all, if the fridge dies on them, you have to fix the appliance. However, they don’t get off scot free – they have to replace all of their spoiled food.

 

2. Dishwasher

Dishwasher Receives Heavy Tenant Use and Damage in Your Takoma Park Rental

Dishwashers are designed to clean dishes, but they are by no means magic.

Unfortunately, many tenants don’t understand, or care, how to properly use a dishwasher.

It is important your tenants understand that they need to rinse off dishes before placing them in the dishwasher.

More importantly, they need to know which type of soap to use in the machine itself.

Sure, dish soap cleans dishes while you are hand washing them, but if you put that soap into the dishwasher, you are in for a lot of trouble that could cost you an entire dishwasher.

When it comes to maintaining the condition of your dishwasher, inform your tenants, prior to move-in, how to use it correctly.

Also, record its initial condition during the move-in inspection.

 

3. Washers and Dryers

Appliances That Take a Beating in Your Takoma Park Rental Property

The washer and dryer are prone to extreme misuse by tenants living in your Takoma Park rental property.

And unfortunately, replacing them is going to cost you a lot if they break down, and the breakage cannot be attributed to tenant negligence.

Here are the most common ways your tenant is likely to abuse your washer and dryer units:

  • Failing to zip up zippers or remove coins, which both scratch the inside of the washer and dryer drums
  • Using too much detergent
  • Using the wrong detergent, such as dish soap
  • Overloading the washing machine with too many clothes
  • Not cleaning the lint trap or dryer vents
  • Never cleaning the buildup of debris from the inside of the washing machine
  • Leaving wet clothes in the washer for prolonged periods of time, which can lead to mold growth

Again, informing your tenants at the time of move-in how to properly use and care for the washer and dryer units will help reduce the damage those appliances typically see.

 

4. Air Conditioning and Heating Units

Air Conditioners and HVAC Units Receive Lots of Tenant Damages in Your Laurel Rental Property

HVAC units have been noted as the most problematic appliance tenants have to deal with in rentals.

And while sometimes problems are out of your tenant’s control, a lot of the damage to HVAC units is due to a lack of maintenance by your tenant.

For example, not replacing the filters that keep your air conditioning unit working properly will cause extra wear on the system, and eventually cause a breakdown.

One thing a lot of property owners do to avoid this, is provide free air filters to their tenants to help remind them to make the changes each month.

 

5. Garbage Disposals

Just as dishwashers are not magic dish cleaners, garbage disposals are not magic food crushers.

Designed for light materials that wash easily down the sink, garbage disposals are often prone to backing up, jamming, or burning out.

Here are some of the most common things your tenant is likely to place in the garbage disposal during their tenancy that they shouldn’t:

  • Bones
  • Vegetable peels
  • Coffee grounds
  • Eggshells
  • Corn husks
  • Grease and oil

 

The biggest piece of advice you can give your tenants when it comes to the garbage disposal is to use the provided sink strainer (that you should have available for use), so that none of these items, or foreign objects such as silverware, get stuck in the disposal and damage it.

 

As you can see, there are several appliances in your Takoma Park rental property that are easily damaged by your tenants.

And, despite them being high-quality tenants that never complain, always pay their rent on time, and don’t break the rules, the truth is, they are likely to be misusing at least one of the appliances listed above.

With Bay Management Group as your trusted property management company in Takoma Park, you can guarantee that proper move-in and move-out inspections will occur before and after every tenancy, to ensure that your tenants didn’t damage your property in any way.

And if they did, we take the correct measures for replacement.

Additionally, we pride ourselves in conducting routine inspections throughout lease terms to ensure nothing needs maintenance or repair.

And if something does, it is handled quickly and efficiently so that a minor repair doesn’t turn into a major repair.

So, contact Bay Management Group now, and see how we can help you protect your Takoma Park rental property appliances from tenant damage.

7 Ways to Prevent Mold in Your Rental Property

Posted on by Bay Management Group

how-prevent-mold-montgomery-county-rental-property

There is no way to avoid the fact that mold spores are floating around your Montgomery County rental property at any given moment.  It’s natural for mold spores, among many other contaminants, to be present in the air we breathe.

However, when the humid Maryland weather hits and the climate begins to dampen, these mold spores tend to flourish, if not handled properly.

While the health hazards mold can present to someone with a weakened immune system are not to be taken lightly, the truth is, mold contamination in rental homes has become one of the most controversial, settlement driven, lawsuit types this country has ever seen.

And, with million-dollar lawsuits being served on property owners all across the country, it is no wonder you might worry about how to control the presence of mold in your Maryland property.

Today, we are going to look at the best ways you can prevent mold from rearing its ugly head in your rental property.

Being proactive about mold will keep your tenants safe from a potentially hazardous health condition, as well as keep your pocketbook safe from a life-changing lawsuit that could ruin your entire rental property business.

 

7 Ways to Effectively Prevent Mold in Your Montgomery County Rental Property

As of now, the federal government has yet to take a firm stand in determining a property owner’s responsibility when it comes to mold in a rental property.  However, Maryland is one of few states in the country that has made it clear that property owners have a legal responsibility to provide a safe and habitable place for their residing tenants.

That means, should your Montgomery County tenant inform you of the presence of mold in your rental property, you have a legal duty to remedy the problem, or else you may find yourself smack in the middle of a landlord-tenant dispute, which could land you in court.

Thus, it is in your best interest to avoid mold popping up in the first place.  So, let’s look at some of the top ways to prevent mold from appearing in your rental property.

 

1. Fix All Leaks As Soon As Possible

Mold loves to grow where there is moisture.  Any tiny leak present in your rental property may yield just enough moisture for mold spores to begin their growth cycle.

Here are some things to remind yourself of, as well as your tenant, when it comes to leaks and mold:

  • Always inspect your property thoroughly before allowing any tenant to move in, to ensure there is no mold growth
  • Tell your tenant to place a maintenance request immediately, should they find a leak in the property during their tenancy
  • Check under cabinets and around all water fixtures regularly for any leaks or water damage
  • Any mold growth should be dealt with as soon as it is found to prevent further growth and possible health complications

 

2. Take Advantage of Fans and Windows

using-fans-helps-prevent-mold-montgomery-county-rental-property

After a long hot shower, there is a lot of moisture left over in the air from the shower’s steam.  This moisture can easily attach itself to the ceilings and walls (and any tiny cracks), and attract mold spores that would be more than happy to start growing.

Since bathrooms do not tend to get much airflow going through them, have your tenants open the windows regularly to get rid of the moisture in the air.  If there are no bathroom windows, have them blow a fan through the bathroom for a short period of time post-shower to achieve the same effect.

The less moisture that exists in the rental property, the less likely the mild spores will be able to start growing.

 

3. Keep the Humidity Levels Low

Any rental property that experiences high levels of humidity in the air is susceptible to mold growth.  Encourage your tenants to keep the humidity level in your rental property as low as possible to discourage spore growth.  This can be done with an air conditioner or a dehumidifier.

Unlike opening the windows in the bathroom after a steamy shower to disperse the humidity in the air, if your rental property is in a region that has humid weather, it is best to keep the doors and windows closed so that the humid air does not enter while you are running the AC or dehumidifier.

 

4. Clean Up After a Spill or a Flood

clean-up-after-flood-prevent-mold-maryland-rental-property

Whether a bucket of water spills on the carpet or a huge rainstorm floods your property’s living room, the key to avoiding mold growth is to clean up fast.

In fact, one often-overlooked area for mold growth is underneath the carpet, in the padding of the flooring.  If seriously wet, the carpet and padding need professional fanning and drying to stop the growth of any mold.

Even a tiny bit of damp padding placed back on the floor can cause the development of a great deal of mold in a short amount of time.

 

5. Check Insurance Policies

Though not always the case, sometimes homeowners or renters insurance policies will cover damages related to mold growth.

It is important that you check your homeowners insurance policy for coverage regarding mold growth.

In addition, it is wise to encourage, or better yet require, your tenants to have renters insurance.  This way, should the mold growth be the tenant’s fault, with proper insurance coverage your investment property will remain protected, repaired, and paid for by your tenants.

 

6. Routinely Inspect Your Property

regularly-inspect-montgomery-county-rental-property-prevent-mold

Part of a being a successful landlord is monitoring your property for damages throughout your tenant’s lease term.

By routinely inspecting your property during the year, you ensure that your tenants are doing what they are legally obligated to, as far as home maintenance is concerned, and that any damages that may have gone unnoticed can be repaired quickly to prevent further damage.

Consider creating an annual rental property inspection checklist and adding leak inspections, moisture damage, and mold growth to the list.  That way, you never forget to check the small things that can lead to a large mold problem.

 

7. Use Mold Inhibitors in Your Property’s Paint

Since mold spores are always present, and they grow so quickly with even the smallest amount of moisture, consider adding mold inhibitors to your paint when you spruce up your property for the next tenants.

By adding specialized mold inhibitors to the paint used on the interior of your rental property, you effectively prevent any mold spores from attaching to the painted surfaces and growing.

Mold is a serious health issue, regardless of the seemingly frivolous and excessive lawsuits running through the court system today.  And, while there are not many specific laws regarding the disclosure and handling of mold in your Montgomery County rental property, you are still obligated to always provide your tenants with a safe and habitable place of living.

By preventing mold growth from starting in the first place, you protect yourself and your investment property.  In addition, by employing Maryland’s finest property management company, Bay Management Group, you lessen the hassles that come with having mold in your property.  So contact us today to learn how we can help keep you and your tenants safe.

5 Things to Know Before Installing a Tankless Water Heater in Your Rental

Posted on by Bay Management Group

installing-tankless-water-heater-rental-propertyDid you know that oftentimes as much as 30% of your Montgomery County rental home’s energy budget is spent heating water? 

If you are looking to go green in your current rental home, or are in need of a new water heater because your current one is on its last leg, you might want to consider installing a tankless water heater.

Today we will look at five key things to think about when choosing a new water heater for your Montgomery County rental property.  This is particularly vital information now as winter is in full swing and hot water will be in high demand in Maryland!

 

What is a Tankless Water Heater?

Before diving into the idea of buying a tankless water heater, let’s first clear up what a tankless water is and how it differs from a traditional storage tank water heater.

 

Storage Tank Water Heater

Storage tank water heaters are by far the most common in all households, rental properties included.  These water heaters have an insulated tank that stores heated water at all times and delivers it as needed.  Storage tank water heaters have temperature and pressure relief valves that open up when certain pre-set levels are exceeded.

 

Tankless Water Heater

Also known as “on-demand” water heaters, tankless water heaters use heating coils to heat water as it is needed rather than continually heating the water day in and day out.  When water is drawn out of the device, the tankless heater warms the water up and delivers it to the correct pipes.  These heaters do not retain any water except for what is left in the heating coils following water delivery.

 

Five Things to Consider When Buying a Tankless Water Heater

tankless-water-heater-considerations-rental-property1. Capacity

With a traditional storage tank water heater, you will have approximately 40-60 gallons of already-heated water ready to go whenever it is needed.  Though it comes at the expense of serious energy use, it is more convenient than waiting for water to heat.  Keep in mind however, that storage tank water heaters take up a lot more space because of their large tanks.

A tankless water heater is much smaller in size because it does not have a tank storing already-heated water.  Tankless water heaters are up to 22% more energy efficient than storage tank water heaters because they only heat water and deliver it to faucets, showers, or appliances when your rental property’s hot water is turned on.

 

2. Cost

A traditional water heater will run you upwards of $300-$600.  However, the more advanced tankless water heaters will cost around $700.

Though initially the higher price tag on a tankless water heater may seem outrageous, it is a good idea to check out your state’s local energy rebate programs before saying “no” to such an investment.  Many states offer rebates to those using energy-approved appliances and nearly all tankless water heaters qualify.  In addition, some energy companies offer special discounts and incentives for using green, eco-friendly appliances.

 

3. Installation

water-heater-installation-maryland-rental-propertyAnother cost consideration when it comes to tankless water heaters is the price of installation.  Since tankless water heaters are much more advanced, there are fewer plumbers qualified to install them.  In addition, most tankless water heaters require a gas connection to work.  If your investment property does not have a gas connection, the cost to install this connection may not be worth it despite the long-term savings tankless water heaters provide property owners.

 

4. Lifespan

Traditional storage tank water heaters are notorious for breaking and flooding homes—usually about every 8-10 years.  While a traditional water heater’s typical lifespan is about 12 years, and lasting 8-10 years is considered relatively good, the fact that they cause so much damage when they break is enough to cause anyone to seek an alternative solution.

Tankless water heaters, however, have the potential to last upwards of 20 years if properly maintained by you and your tenants.  Since tankless water heaters come with complicated inner heating coils, it is suggested that a professional who has expertise in maintaining tankless water heaters service your heater once a year to ensure it functions properly at all times.

Additionally, it is suggested you have a working water softener to decrease the amount of calcium buildup on the inside of your tankless water heater, though the same should be said for storage tank water heaters as well.

 

5. Convenience

Tankless water heaters take up less living space since they are usually mounted on the wall, and are energy efficient in their use and deliverance of water.  However, since the water is not stored at hot temperatures at all times in a tank, tankless water heaters take much longer to heat water up.  This is because idle water that draws up starts at room temperature or colder.  In the end, cold water will initially come out of your faucet, shower, or appliance until the water reaches its proper temperature.  This can be a huge disadvantage in cold places such as Montgomery County.

In addition, since tankless water heaters are so much smaller than storage tank heaters, they can only deliver limited amounts of hot water at a time.  This means taking a shower and running a load of laundry simultaneously is going to be difficult because the two will be competing for the same limited supply of water.  On the other hand, a storage tank water heater always has plenty of water to deliver to multiple places at once with its large tank.

Altogether, there are certainly a number of things to consider when looking to invest in an expensive tankless water heater system for your Montgomery County rental property.  There are many considerations to weigh and it is largely a personal decision as to which type of water heater will work best for your property and, ultimately, your wallet.

 

If you do decide to go green and install a tankless water heater in your Montgomery County rental, contact Bay Management Group to properly advertise your vacant rental as one that is energy efficient.  Utilizing multiple platforms to inform potential tenants that your property is available for lease is one of Bay Management Group’s specialties.  In addition, we can help you manage all other aspects that relate to your property, from tenant screenings, to lease drafting, all the way through rent collections and regular inspections.  So get in touch today and see how we can help you.

Why Landlords Shouldn’t Try to Manage Their Own Properties

Posted on by Bay Management Group

Managing Your Own Rental Properties Takes a Great Deal of Organization and Multi-Tasking

Deciding to start your own Montgomery County rental property business is an exciting time. There is so much that goes into investing in your first property, placing your first tenants, and of course, managing your first rental property.

And, if you choose the hands-on approach and decide to manage your own property, you get to take the front line and have an active role in all things management and maintenance when it comes to your rental home.

 

There are plenty of benefits to managing your own property:

  • You have direct control over everything that takes place in your rental
  • You are in constant contact with your tenants
  • You may save a little cash avoiding property management fees

 

However, there are many more benefits to handing over the large responsibility of managing your Maryland rental property to a highly qualified property management company such as Bay Management Group. In fact, you can even be a seasoned property owner and reap the benefits of a property management company caring for your investment properties.

 

Today we will explore the reasons why you should not attempt to manage your own Montgomery County investment property and how handing the reigns over to the experts will save you time, money, and plenty of headaches.

 

The Downsides to Managing Your Properties

The prospect of hiring a property management company to manage your investment properties can be a daunting one. Though it can be appealing to think of someone handling the day-to-day administration of your rental property business, it is not always easy to hand over something as important as managing your rental property.

 

However, with a little due diligence and a lot of research, you will find that employing a quality property management company is typically the best choice. In fact, here are some convincing reasons why you should not consider managing your own Montgomery County rental properties.

 

You Do Not Have the Right Expertise

If You Lack the Expertise, Managing Your Own Rental Properties Will Be Very Difficult, Maybe Impossible

If you want to get into investing in real estate but have no experience in the field of property management, it is wise to leave that up to the professionals. Learning as you go can be highly ineffective and end up costing you a great deal of time and money in the long run. By attempting to manage your own properties you run the risk of:

  • Hiring the wrong vendors to make repairs, which can become costly and time-consuming
  • Using ineffective advertisement that can lead to longer vacancies
  • Violating Fair Housing laws or becoming a victim of alleged discrimination that can land you in court
  • Improperly screening tenants, which makes for trouble tenants
  • Implementing poor rent collection policies that can dig into your bottom line

The truth is, if you have no experience in managing a rental property, you should not start doing so with your own costly investment property.

 

Managing over 1000 units in the Baltimore-Washington D.C area, Bay Management Group has years of in-depth property management experience. Less than 1% of all placed tenants are evicted under the management of BMG. This is because of their strict tenant screening and placement procedures. Plus, being broker-owned and locally operated, Bay Management Group is educated in all things property management and is actively involved with all of their properties.

 

Your Portfolio is Growing

With a Growing Portfolio of Investment Properties, It Will Become Harder to Manage Them On Your Own

As your portfolio of Montgomery County properties increases, so do your responsibilities. Since many people get into the rental property business to make passive income to fund vacations, pay off debt, and even replace their corporate income, they tend to want to increase the amount of properties they own and make them available for lease.

The problem is, the more properties you own, the more tenants, administrative duties, and problems you encounter. Owning multiple properties will never yield a true “passive” income if you choose to manage the properties on your own. Your time commitment will increase significantly the more properties you have and you will end up sacrificing many of the following:

  • Your job. If you are a full-time employee seeking to build a strong rental property business, balancing both by managing your own properties is going to take some serious luck. Either your career or properties will begin to suffer over time, possibly leading to the downfall of one or the other.
  • Your family. If you have a lot of extended family you spend time with or small children at home, managing your own properties is destined to cut into family time. Late night maintenance emergencies, long days at the office dealing with paperwork and tenant placement, and day-to-day communications with tenants can eat into family time.
  • Your social life. Just like your family time, any type of social life you have will likely be interrupted if managing your own properties. Your tenants deserve the best treatment and managing your own properties cannot be performed at your convenience. This means being prepared to bolt out the door at any moment to take care of something property-related.
  • Your free time. Many adults crave the elusive “me time” that seems to dwindle as families grow, careers boom, and life happens. If you are on-call to manage your Maryland properties, you may find what little bit of free time you have for yourself again being taken away due to plumbing issues, non-payment of rent, and property showings, just to name a few.

 

Enlisting the help of a property management group that is on call 24/7 will diminish this loss of time, leaving you room to build a bigger career, enjoy family holidays, get social with your friends, and even enjoy that book you have been trying to find time to read. Plus, you will reap the rewards Montgomery County properties bring in, all with very little effort on your part.

 

Your Personality Does Not Click With Others

Customer service is a major component that property management companies focus on in order to gain customers and retain tenants. If you are not the type of person that wants to deal with the headaches that come with evictions, complaints, and maintenance requests, you should not manage your own rental properties.

Property managers, like the ones at Bay Management Group, are well-versed in how to deal with even the toughest of tenants. They understand the landlord-tenant laws, can buffer any issues your tenant has with your property, and pride themselves in being able to diffuse any complaints or issues that arise.

 

For Those That Need More Convincing

If you are still not convinced that employing a property management company is the right decision for you, check out these other reasons why managing you own properties may not be your best option:

  • The location of your properties span far and wide, requiring extensive travel commitments
  • The condition of your property is not pristine, which means repair requests may be regular and often-occurring
  • You are unsure how to add extra curb appeal to your properties to attract high-quality tenants
  • You don’t know how to draft legally-compliant lease agreements with the provisions you want

 

Altogether, hiring a property management company such as Bay Management Group to manage your Montgomery County rental properties far outweighs the benefits that come with managing properties on your own. With the lowest monthly management rate in the region, a 12-month tenant warranty in place, and a support staff of over 20 people, you can rest assured you will save money and your property will be well-cared for with Bay Management Group.

 

In addition, services such as tenant screening, vacancy advertisement, lease drafting, an on-the-clock maintenance staff, and in-depth knowledge of the Montgomery County market are what Bay Management Group provides their property owners. Contact us now and see how Bay Management Group can help take a load off your plate and give you the peace of mind you’re looking for with your rental property investment.

Top Considerations if You Need to Fill Your Vacant Rental Property Quickly

Posted on by Bay Management Group

Speed vs. Quality: Interviews and Screening Tenants

Be Sure to Properly Screen Your Potential Tenants To Avoid Problems Down the Line

Most landlords dream of filling a vacancy almost immediately. But, when trying to put someone into their empty properties as quickly as possible, they often ignore proper screening processes.

If you don’t go through the proper screening and interview process, the tenant may end up violating the terms of the lease, which will result in you having to eventually evict the tenant.

No landlord enjoys evicting tenants. The eviction process itself can take months, and you likely won’t collect any rent during that period. Thus, be sure you don’t discount the long-term benefits of taking your time to put a quality tenant in your rental property.

 

Traditional Marketing Not Working for Your Rental? Think Outside-the-Box

Consider Non-Traditional, Outside The Box Marketing Options To Fill Your Vacant Rental Property Quickly

  • Word of mouth. Try to encourage your other current tenants to spread word that you have vacancies. You can even offer referral bonuses if they do, such as half-off the next month’s rent.
  • “For Rent” signs. It might seem silly, but putting up signs in front of your rental will capture the attention of local traffic. Even if the person who sees it doesn’t want to rent from you, they may know someone who does.
  • Online listings. Websites such as Zillow and Craigslist allow you to post your rental property listings for free. You can also take advantage of free online classifieds and other listing sites for Baltimore County.
  • Real estate offices. Many larger real estate offices handle rental properties, but be aware that they’ll often charge you a fee that varies depending on your location.
  • A Baltimore County property management team. A local property management company such as Bay Management Group can take over the duties of marketing your vacancies, as well as many other unwanted landlord tasks.

 

Consider Opening Your Rental to Section 8 Housing

The term “Section 8” refers to renters who qualify for the government’s Housing Choice Voucher Program.

People who qualify have a very low income and receive help to afford their rent. The government pays anywhere from 33 to 75 percent of their rent.

While it is illegal to discriminate against tenants for reasons outlined in the Fair Housing Act, it is important that all income property owners fully understand the program and how it may work for their rental.

 

Benefits

A Pro to Opening Up Your Rental Property to Section 8 Housing is Guaranteed Rent

  1. Guaranteed rent. The percentage of the tenant’s rent covered by the government will arrive on time every month via direct deposit.
  2. Low-priced marketing. Many websites offer property listings for a low fee. They’re frequently visited by Section 8 tenants, so it’s an effective way of placing renters in your properties quickly and inexpensively.
  3. Potentially higher rental rates. In general, the rent you can ask from a Section 8 tenant often exceeds what you get for low-income housing.
  4. Shorter vacancy periods. Many cities have lists with a great number of Section 8 participants seeking housing. If you file a vacancy on a property that has already been inspected and approved for Section 8 housing, you’ll very quickly fill the spot.
  5. Long-term tenants. Many Section 8 tenants stay in the same rental properties for a long time. They typically sign one-year lease agreements wherever they go, but oftentimes stay for much longer. They’re allowed to move, but they’re required to notify the Housing Authority, provide you with proper notice, and find a new home before they’re able to do so.

Concerns

  1. No damage compensation. If a Section 8 tenant damages your property, you won’t receive any damage repair money from the government. The tenant’s voucher may be revoked as a result of damages caused to your property, but you won’t see any compensation for your losses.
  2. Additional occupants. Section 8 tenants are more likely to allow long-term guests such as family members and significant others to live with them. These extra occupants cause extra wear and tear on your property and aren’t legally allowed to live there under Section 8 rules.
  3. Strict property guidelines. Section 8 will not pay you any rent until they’ve inspected your property and approved it. Fortunately, their guidelines are fairly straightforward – but strongly enforced. If you fail your inspection, you have 30 days to make whatever necessary repairs before they’ll perform another inspection.
  4. Section 8 is often understaffed. As a result, minor clerical errors are commonplace. You may have trouble contacting Section 8 offices and filing claims.

 

Filling a vacant rental property in a rush can be stressful and it may be tempting to cut a few corners to move the process along quickly. However, it is essential that every rental property manager or owner adhere to a routine screening process with each potential tenant.

Always do your due diligence before approving a tenant’s application and think about the long-term relationship you will have with these tenants.

If the thought of this is overwhelming and you would like to enlist the help of a professional to aid in this process, contact Bay Management today to help you with all aspects of managing your rental properties.

 

 

4 Rental Property Upgrades That Waste Your Time and Money

Posted on by Bay Management Group

Some Upgrades to Your Rental Property Are Not Worth the Time and Money

Investing in a Montgomery County rental home often means getting a great deal on a property that needs some TLC. With the overall goal to make your investment property appealing in order to get the highest rent rate possible, it is sometimes necessary to go beyond fixing the required damages that exist; sometimes you need to take it to the next level and update and renovate your property for added allure.

 

Keeping upgrade costs low while greatly improving your Montgomery County rentals should always be your long-term rental strategy. However, having a budget and planning for the right upgrades are what will make you the most money in the long run.

 

Today we will look at some strategies to use in your decision of whether to upgrade your newly acquired rental property. In addition, we will discuss four upgrades that are in fact a waste of time and money and are unnecessary for you to make in order to maintain a positive cash flow.

 

Should You Upgrade Your Montgomery County Rental Property?

When you purchase an investment property that needs some extra attention, oftentimes the biggest decision will be to what extent you should upgrade or renovate the property’s current condition. And no, we are not talking about required repairs needed to provide a safe and habitable home for your future tenants. Rather, we are talking about modern improvements made to the property that add extra charm and allow for higher monthly rent rates.

Here is a sample list of important things you ought to consider before making the decision to renovate your Montgomery County rental:

  • Cosmetic upgrades are the most noticeable improvements and the ones tenants are likely to appreciate – thing such as fresh paint, new flooring, and attractive landscaping
  • Appliances are another rental home hotspot – ENERGY STAR appliances are preferred and modern styles are the most attractive
  • The condition of your property’s windows and doors influence a tenant’s decision to rent because they can be seen from both the inside and outside of the home

Of course, the above is not a comprehensive list of things to consider before deciding whether to make upgrades to your investment property. Rather this list gives you a general idea of what to think about before embarking on the journey of renovation.

 

4 Montgomery County Rental Upgrades That Are Not Worth It

4 Rental Property Upgrades That Are Not Worth It

Although upgrading your Montgomery County rental property can have many benefits, the truth is that some things are better left alone. Here are the rental property upgrades that most often result in lost money and time.

1. Landscaping

Curb appeal is a big part of placing high quality tenants in your rental property and securing a solid monthly rental rate. However, investing a lot of time and money into your front and back yards can actually backfire.

If you invest a lot of money into your rental home’s landscaping, you risk these two main things:

  • Possibly turning away potential tenants that may be a perfect fit for your home. Yards are subjective—some tenants may not like an overdone landscaping job, and thus turn down leasing your property.
  • Some tenants may not agree to maintain such an extravagant landscape, forcing you to maintain the landscaping yourself by spending additional money on a maintenance service.

In the end, when it comes to landscaping both your front and back yards, it is best to keep things simple and neat. That way your home is still inviting, but not expensive to stage initially or maintain.

 

2. Closet Renovations

Renovating the Closet of Your Rental Property is Not Worth the Time and Money

Having enough closet space is something every prospective tenant is searching for in a rental home. However, upgrading that welcoming walk-in closet your rental home has will not come cheap. In fact, most people have no idea just how expensive closet renovations are. Estimated to cost upwards of $4,500, a simple closet upgrade can put you deep into the red for a space that is not crucial to the life of your tenants.

Plus, most people are looking for big closets with lots of space. Sure, storage options, built-in organizers, dressing areas, and even closet islands are fancy, but chances are your monthly rent collection will not recoup the cost of investing in a fancy closet for some time.

 

3. Windows and Doors

Renovating Windows and Doors on Your Montgomery County Rental Property is Not Worth The Investment

Remember, windows and doors are seen from both the interior and exterior of the home. That makes them an important part of the overall appeal of your rental home. However, that does not mean you want to foot the bill for completely upgrading them.

Changing out every window your Montgomery County rental can quickly become a costly endeavor. Though your old windows may be leaky, drafty, or even just unsightly, it is important to carefully consider the cost of replacing them. Get a professional to evaluate the condition of your windows before deciding to what extent you will renovate them. Who knows—you might be able to get away with simply replacing the sashes for visual appeal. In the end, if you can avoid spending tens of thousands of dollars on replacing the windows of a home you don’t get to enjoy yourself, do so.

On that same note, opting to upgrade your front door can be relatively costly as well. Though fiberglass doors are trendy right now, a steel frame door may cost save you $500 and have the same rate of return as the more expensive fiberglass one.

It is best to opt for a front door that matches your rental property’s architecture and will add character to your home. Doing this, rather than shooting for the fanciest thing on the market right now, will add a special charm prospective tenants will enjoy, while also saving you money.

 

4. Hardwood Flooring

Installing hardwood flooring throughout your Montgomery County rental home can definitely make for a nice first impression. However, this type of flooring is extremely expensive and typically requires professional installation, thus costing you more money.

And, while hardwood flooring looks great, many tenants prefer the softness carpet brings, especially in the bedrooms. Plus, if your tenant has children, there is a chance they may prefer carpet in the living areas as well.

In addition, hardwood flooring scratches easily. This means that replacing large sections of flooring each time new tenants take up residence in your home will be necessary. This also means more money out of your pocket will go onto into your flooring budget on a regular basis, which is counterproductive to a positive cash flow.

If you do decide that you need to upgrade your flooring, try a more cost effective type such as laminate, linoleum, or even tile.

 

If you own a Montgomery County rental property that is need of some extra care before putting up for lease, make sure you carefully budget for and plan your renovations. Depending on things such as property location, surrounding competition, and going rental rates, you may not want to invest a lot of extra cash into an already decent property.

If you are new to the rental property business, or find your portfolio growing in size and are in need of a high quality Montgomery County property management company, contact Bay Management Group today. Not only are we experienced in all aspects of managing rental properties, we can also help guide you when it comes to adding extra curb appeal to your rental property. This includes whether to make upgrades or leave well enough alone, and how to price your rental home at the highest rate possible.

Get in touch with Bay Management Group now. With the lowest monthly management fees in town and the ability to take on all that comes with managing your investment property, by using Bay Management Group you will save both time and money and have the peace of mind that your rentals are well cared for and are generating a positive cash flow.

What to Consider Before Investing in a Rental Home with an HOA

Posted on by Bay Management Group

Homeowners associations in America don’t have the best reputation.  They have a history of complaints of abuse, mismanagement, and wasted finances, and things don’t seem to be changing. However, there are some benefits to investing in a home that is part of an HOA.

The best thing to do is, before you invest in a rental property in the Montgomery County region, investigate whether the property is part of an HOA.  After all, as the property owner you are liable for the tenants that reside in your home and pay a monthly rent.  This means any violations of the homeowners association’s rules and regulations by your tenants may fall upon you in the form of hefty fines.

Today we will look at some of the things you should consider before investing in a property monitored by an HOA.  This way, when it comes to deciding whether an HOA is right for your property investment needs you will be better prepared to make a knowledgeable decision.

 

Common HOA Complaints from Income Property Owners

Many Complaints Arise From People Who Are Part of An HOA Homeowners Association

As mentioned earlier, there is no lack of complaints against homeowners associations across the country.  Some of the most common ones include:

  • Wasting of association funds
  • No access to official records
  • Poor communication
  • Hostility towards homeowners or tenants
  • Manipulation of elections
  • Withholding of facility or service use
  • Poor maintenance of common grounds
  • Secret meetings
  • Violation of Fair Debt Collection practices

That being said, not all HOAs are bad.  And, if you take your Montgomery County investment properties seriously and research everything before signing on the dotted line and placing tenants in your home, an HOA may actually help maintain the value of your property and thus your monthly rental rates.

 

HOA Questions To Help Guide You

Here are some of the most important things to consider before purchasing a rental property that resides in an HOA.

What Services Does the HOA Provide?

Each HOA will have its own set of specific services it provides your community, though there are some general things every quality HOA should offer.  These basics include:

  • Administration services
  • Financial services
  • Customer service
  • Communication
  • Maintenance

It is a good idea to get a detailed list of everything the HOA says it is responsible for before buying a property.  You might also consider questioning the HOA’s level of involvement in the community to ensure it is following through on its obligations and staying proactive.

 

What is the HOA’s Financial History Like?

Take a Look at the HOA's Financial History to See How They've Used Money in the Past

Though every HOA differs in terms of daily procedures, homebuyers are entitled to see their potential HOA’s financials to ensure the HOA is not in the red.  You can receive this document via the homebuyer or directly from the HOA.  It will likely include things such as:

  • The balance sheet
  • Yearly revenue from monthly dues
  • Reserve fund balance
  • Notice of pending lawsuits
  • Information regarding recent assessments
  • Percentage of homeowners behind on their dues

Unfortunately, reading complex documents such as an HOA’s financials can prove challenging.  You might need to have someone you trust in the finance industry to help you decode all of the numbers.

 

How Do The Common Grounds Look?

HOAs are responsible for maintaining the common area of the community.  Do not simply focus on the property you are looking to purchase.  Rather, get a look at the community as a whole.  If a neighboring yard looks disheveled, chances are the HOA is not implementing its rules and regulations as strictly as you may like.

Because first impressions are so important, it is crucial the entire community looks well groomed.  No prospective tenant will want to lease from you if the neighboring homes are not up to par on their curb appeal.  Plus, if you are paying what can sometimes be hefty monthly HOA dues, you should be sure the HOA fulfills its part of the deal and maintains the grounds.

 

What is the HOA’s Method of Communication?

Communication and Community Are Key With Homeowners Associations To Ensure Voices Are Heard

A large part of what HOAs do is communicate with the board members and community homeowners.  A reputable homeowner’s association will effectively communicate the community’s needs in a variety of ways to make sure everyone involved in the community is up to date.  This includes phone calls, emails, live chats, and even a website for homeowners to know what is going on in the neighborhood.

 

How Does the HOA Assessment Collection Work?

One of the most disliked things about HOAs is their collection of monthly assessment dues.  Often inflated, many homeowners have no clue how their monthly dues are being used to help the community.

HOA assessment money is important for the stability of the community.  It helps to pay for the common grounds all residents enjoy as well as extra activities put on by the association for the benefit of the residents.  In addition, this money also pads the reserve funds that cover the cost of any major repairs to the community.

It is the responsibility of the HOA to collect assessments from homeowners.  And, if you own a Montgomery County rental property, it is likely you are paying the monthly HOA dues as a benefit to your tenants.  As a homeowner you are entitled to know that the community’s money is being put to good use and is used responsibly.  In fact, there are laws in place protecting residents from shady HOAs that use the assessment money poorly.

You should learn before making a property purchase how the HOA handles its finances and do your best to ensure the HOA is fulfilling its obligations to the community with that money.

 

Does the HOA Have The Following Traits?

Though it can be hard to judge the overall feel of a homeowners association without having actual experience with them, it is important you do your best before purchasing an investment property.  Try talking to the board members to get a feel for who they are and what their roles on the board entail. Or, try to converse with prospective neighbors and see how they like the neighborhood and what they think of the HOA.

Here are the most important things your future homeowners association should do for the community:

  • Respect all homeowner interests
  • Enforce the democratic process where all opinions are heard and weighed equally
  • Offer community services and amenities to all residents
  • Maintain the community’s values
  • Enforce the rules and regulations
  • Meet the financial obligations set forth in the CC&Rs
  • Conduct ethical behavior in all matters with transparency to all community residents
  • Balance the community’s needs and those of individual homeowners

 

In the end, where you plan to purchase your Montgomery County rental property is a big deal.  And, when you throw in the possibility of the property being in an HOA community, there is even more to consider.

If you are looking to purchase a rental property that has an HOA representing the community, make sure to do your research thoroughly.  You are financially obligated to an HOA once you invest in a property that has one and you want to make sure that you are happy with how the HOA conducts its business, maintains the value of your neighborhood, and enforces the rules, especially the financial ones.

In addition, if you are looking for an experienced property management company to help you manage your Montgomery County rental property, contact Bay Management Group today.  Not only can we help you with all things property related, we help manage your tenants and ensure they are following the HOA rules and regulations perfectly.  By enlisting the help of Bay Management Group, your concerns about HOA properties will disappear.

How Many Properties Should You Buy and Manage as a Montgomery County Landlord?

Posted on by Bay Management Group

Rental properties are a great way to invest your money and supplement your income. This is especially true if you are investing in the Montgomery County area. With plenty of properties to choose from in a quickly-growing region with lots of appealing amenities, owning rental property in Montgomery County will provide you a steady cash flow from the start.

But how many investment properties should you commit to owning and managing? 

The answer to this question is not cut and dry. In fact, a number of factors can potentially affect how many investment properties you have in your portfolio. Thus, it is essential you evaluate your own individual situation before making a decision.

That being said, there are some general things all property owners in Montgomery County can consider when deciding the total number of rental properties they would like to purchase and manage.

 

Rental Property Questions To Ask Yourself

Investment properties provide excellent opportunities to build a passive income and fund things such as your bank account, vacations, or even retirement. However, there are several things to ask yourself before investing in every Montgomery County property you find matching your rental needs.

 

Question #1: What Are Your Big Picture Goals?

Be Sure To Know Your Goals Before Deciding How Many Montgomery County Properties You Should Invest In

Many people want to jump right into the rental property business and start making money as soon as possible. The problem is, with no long-term goals in place, it is hard to determine how many properties are needed to meet those goals. Worse yet, not having a basic plan can ruin any goals you may have for the future. After all,

“If you fail to plan, you are planning to fail” – Benjamin Franklin

 

Here are some things to figure out before choosing how many rental properties to purchase:

  • How will you be financing the first property you plan to purchase?
  • Are you looking to supplement your income and keep a full time job, earn enough money for fancy vacations, or secure enough for an early retirement?
  • How much involvement in the management of each property do you plan to invest?
  • What is your exit plan should your rental property business not yield your desired results?

 

Question #2: How Will You Finance Future Purchases?

Getting your first Montgomery County purchase under your belt is one thing; making multiple purchases down the line is an entirely new ball game. You must have a way to finance future purchases. In the end, no matter how many properties you think you should own and manage, you must have enough money in the long term to purchase successive properties.

Here are some ways to save money in an effort to increase the number of property purchases you can make:

  • Regularly evaluate your property value so you know exactly how much equity is built in
  • Research your properties and only purchase ones with positive cash flow
  • Get an interest-only loan and place the excess cash into a separate account as savings for your next purchase
  • Continue saving money just like you did for your first rental property purchase

 

Question #3: How Will You Improve Loan Approvals?

Despite how many Montgomery County properties you want to own, or how much money you want to make each month, the bank has a great deal of control over what you actually do.

Bank lenders want to minimize their risk when it comes to loaning money to investors looking to purchase multiple properties. In order to continue building your portfolio, you need to improve your serviceability and prove to the bank you will pay up each month.

Here are some great ways to convince banks you will follow through on your financial obligations:

  • Increase your income any way you can – take a job promotion or start a side business, and save, save, save
  • Invest in positive cash flow properties – banks tend to approve loans for those receiving positive cash flow each month
  • Get experienced in negotiating with lenders – present all of the reasons you will follow through on your loan obligations and why you make a good investor

 

Question #4: How Much Time Do You Have to Manage Multiple Properties?

How Much Time Do You Have to Maintain Your Multiple Montgomery County Rental Properties?

If you are like many property owners, you have a full time job in addition to your involvement in the rental property business. Owning many properties can quickly become overwhelming if you choose to manage them all on your own. And, if you overexert yourself and spread yourself too thin, chances are your career and properties (including your tenants) will suffer in the long run.

If you aim to own multiple properties, but do not have a lot of time to manage them on your own, one solution is to hire Maryland’s leading property management company, Bay Management Group. The knowledgeable staff at BMG can manage every aspect related to your rental properties. This includes things such as:

  • Vacancy advertisement
  • Tenant screening
  • Lease drafting
  • 24/7 maintenance and repair services
  • Regular property inspections
  • Legal backup
  • Strict rent collection procedures

 

In addition to employing the help of an experienced property management company such as Bay Management Group, you might consider partnering up with someone so that some of the tasks related to your properties are split. In addition, the finances and experience of a well-balanced partner can make your rental property business that much more successful.

 

In the end, the answer to the question regarding how many properties you should own and manage is this: as many as you want, as long as you are willing and able to work for it.

Everyone’s situation will differ and pose challenges along the way when it comes to purchasing multiple rental properties. However, none of these difficulties can prevent you from achieving your goals as long as you educate yourself in the rental property business, have clear goals in mind, and have a plan before jumping right in.

Additionally, you can enlist the help of Bay Management Group to take a lot of the stress of owning multiple rental properties away and make matters even easier to handle.

 

If you are looking to boost your Montgomery County portfolio and add more properties to increase your income, contact Bay Management Group today and see how we can help you manage your multiple rental properties, leaving you room for the fun things in life.