Real Property Management Rio Grande: Top Myths in Rental Property Ownership
- If I don’t cash flow, I’m losing money. Not true. With principle payments, tax deductions, appreciation, leverage, a property with negative cash flow of $200 can result in investment returns of 10% or more.
- Tenants will destroy the house: While horror stories do exist and are true, there are a number of activities people can take to minimize risk. Starting with tenant screening, making sure the house is well maintained by the owner, and periodic inspections.
- Management fees are too high: Annual Management fees are less than one percent of the value of the property. Most investment management companies charge a higher fees and we are actively monitoring the property, collecting rent, and managing the property 24/7. These fees can be offset by increases appreciation of house
- If a tenant doesn’t pay rent, you cant get them out. New Mexico is a fairly landlord friendly state but even in more tenant friendly states, a professional management company that follows up with tenants consistently can collect rent or evict the tenant efficiently.
- I can get a friend to manage my property for less. It is illegal for someone to manage a house they do not own…. even if they are managing it for a friend or relative. Plus, having a friend manage a $150K asset for you might not be the best judgement call. We are licensed, insured, experienced proessionals
REMEMBER: If you ever have questions about property management, Owner-Resident Relations Laws, or general real estate questions about buying, selling or renting a home, we are here to help. Phone calls are always free! 505-225-2812
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.