Is Your Property Manager a Realtor?
Most property management companies are run by Realtors. They can manage your property, or sell it, or whatever. Too bad for you the Realtor can make a lot more money in a lot less time if they throw your property on the MLS, have a buyer come along, and get a 4% commission instead of managing it.
The mindset of a realtor is not the same as a real estate investor. Realtors are salespeople, helping people buy and sell their homes regardless of capital gain or loss. Investors are seeking high returns on their money, generating cashflow and building wealth. During the boom and bust of the mid 2000’s, many realtors got burned thinking they were investors just because they were in the real estate business.
Usually a Realtor will get into the property management business, thinking it is easy and will generate a little extra income. The result is a domination of Real Estate Agencies, who also do property management. Would you hire an electrician who does a little plumbing on the side to fix your sink? No, you would hire a plumber.
The lack of focus and priority among these companies makes finding a good property management company hard. Sun Rock Property Management was developed by real estate investors to offer an alternative to the realtor/property management companies.
Property Management is all we do.
For focused, efficient management with a personal commitment to you, contact Sun Rock Property Management.
If Mortgage Rates went up….
If mortgage rates went up, the dollar would be worth more. Money would be more expensive to borrow, therefore more scarce and valuable. You would have more purchasing power with the money you already have and earn a higher return on savings. Banks would have more money to lend, because they could entice customers with high CD, IRA and savings rates. The higher rates would curb inflation, causing the price of everything to go down, including real estate.
Higher mortgage rates will further depreciate America’s housing market. If you are selling a home for $100k and the average mortgage rate is 5%, the buyer’s payment on a 30 year fixed mortgage is $536 per month. If the mortgage rate went up to 8%, how much of an offer could the buyer make and still keep their monthly payment at $536?
Answer: $73k. Buyers in the market for your property can now only offer 73% of the price when rates were 3% lower. Your home just depreciated 27%.
Are we at the bottom? Not even close.
On April 1st Federal Reserve is not continuing its investment, which means that mortgage rates are about to increase. Experts believe home prices will drop 5 to 10 percent. – realestate.com
Rates have been kept artificially low for the past 9 years, creating a boom and then propping up a bust.
Perhaps rates should really be at 15-20% to make up for all the money that has been printed and spent.
Either rates will stay low and the whole thing will go into a death spiral or at some point market forces will push rates up. When that happens, expect your home to be worth less, and maybe the market bottom will be in sight.
For professional property management in Lakewood Ranch, FL, contact Sun Rock Property Management
Get Out of Contract with Property Manager
As real estate investors ourselves, we know what it feels like to be trapped in a contract with a bad property management company.
The contracts can be confusing, many automatically renew, so it is not clear when they expire. Almost all have penalties and advance fees taken out for early termination.
Not knowing what to do, I hung on to a bad property management company for a long time. Bad property managers cost you a lot of money. When enough was enough, I called to cancel.
They informed me of the penalties and advance fees they were going to collect. They weren’t doing the work they were supposed to, now I have to pay them for work they are not even going to do.
I decided then Sun Rock Property Management would not put clients in these positions.
We feel we have the best rates and the best quality and do not need to tie people down with contracts. If you are no longer satisfied with our service, you are free to go. We are too busy to work with owners who do not want to work with us.
Each of our contracts has a clause in it stating,
‘The owner or Sun Rock Property Management can void the contract at anytime, for any reason, without penalty.’
Would your property management company do this for you?
For the best property management in Lakewood Ranch, Florida contact Sun Rock Property Management.
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