When someone comes into my office, they immediately start asking questions. I tell them that their questions are very important, and we will get to them in a moment. First, I want to ask the client an important question.
What is their intention with their real estate? Is it for a short-term or long-term play? If it is a short-term play, why is it a short-term play? Is it because of the risk or the fear that they have about owning real estate?
Sometimes, people come in and are afraid of owning real estate. I try to teach them to embrace owning real estate so that they can keep their property in the long run.
Landlords have some big fears, and they are really justified in having these fears. If someone is choosing to have their house rented out, they are especially worried if it is their first time. When someone rents their $200,000 or $300,000 house, their number one fear is malicious damage.
Malicious damage is about someone getting in there and completely tearing their house up. Many people have heard all of these horrible landlord-tenant stories. They have heard about tenants leaving trash or not paying rent.
Landlords also hear about eviction costs. Some states are easier than others. In some states, evictions can take months to do. There are even states where the tenant can ask for a jury trial. Tenants may choose this option as a way of buying time. When they choose this option, the eviction cost quickly escalates. With an individual owner, the owner has just one or two properties. They do not have the benefit of having eight or nine other properties that will pay the rent while they do not have any money coming in.
The next fear that is really common is about the loss of rent. Landlords cannot afford to not have rent money coming in to cover their mortgage payment. Ultimately, an empty unit does not do anyone any good except for the cleaners. Only the cleaners can make money off of an empty house. When someone has a high turnover that keeps happening every single year, it makes their investment less valuable.
When owners have these problems and actually have to deal with it, our product can help. It helps them deal with the loss of rent, malicious damage and eviction costs. Whether someone is an accidental landlord or a traditional investor, they all want to have that peace of mind. They want to have their property protected. They want the property to be free of problems, and they want to hopefully be generating a profit.
We love discussing this with our current and potential owners and investors. If you have any questions about how this could impact your investment property or property management in Phoenix, please feel free to contact us at Service Star Realty!