The work of a real estate investor is not easy. It requires a team effort. More so, if you are in charge of several properties.
Any successful real estate investor knows that a large part of their success lies in the team they surround themselves with.
By forming relationships with real estate professionals, you can get the help you want when you need it.
1. Real Estate Lawyer
Real estate attorneys can help you understand contracts and other legal documents. In fact, their job requires them to know the rules and regulations related to real estate transactions.
If you are managing one property, you have less chances of encountering legal issues. However, when managing multiple properties, it’s safer to keep an attorney close by.
A real estate lawyer can help you:
When you have to evict a tenant due to a breach of the lease agreement.
- For example, your tenant may stop paying rent.
In case you are facing a tenant discrimination lawsuit.
- You may unknowingly discriminate against a tenant on the basis of religion, sexuality, disability, gender, or race.
In the event that a liability lawsuit arises.
- A tenant may get injured on the rented premises and may sue you for being negligent.
With a bit of luck, none of these situations will ever happen to you. However, as a diligent real estate investor, it pays to be ready.
2. Certified Public Accountant
Keeping track of your financial records is, for many people, among a long list of unpleasant tasks. Regrettably, it’s something that most people can’t neglect. It becomes crucial when the time comes to take care of your taxes.
An accountant can help keep your files orderly and your tax returns updated. Landlords are also entitled to a variety of deductions and credits. Examples of tax deductions for landlords include:
- Legal and professional fees
- Management fees
- Travel expenses
- Utilities
- Insurance premiums
- Maintenance
- Repairs
- Depreciation of assets
- Loan interest/points
Besides, a good accountant is beneficial when it comes to various financial matters.
3. Property Manager
If you have multiple properties, hiring a property manager can be a logical choice. They will help you manage tenants, handle maintenance, and any other tasks you allocate to them. In fact, if you hire the right person, they may be the only professional you’ll need.
However, hiring a property manager comes with a cost. Roughly speaking, expect to pay a fee of close to 10% for a single-family rental property. For 10 or more units, the fee is typically between 4% and 7%. At Warner Quinlan, we let you name your price. You can check out our pricing page for more information.
4. General Contractor
A general contractor can be a great asset to the maintenance of your property. Here are a few examples of tenant emergencies:
- Water emergencies
- Electrical emergencies
- Gas emergencies
- Other emergencies (leaking roof, lack of heat, and backed-up sewer lines)
These cases are time sensitive. For this reason, you’ll need someone reliable who can handle such emergencies.
If you’ve cultivated a good relationship with a competent contractor, you can be sure to count on them if these situations arise.
5. Property and Casualty Insurance Agent
Cutting corners and skipping steps can turn your dreams of being a real estate tycoon into a financial nightmare. To avoid this, you need insurance to protect against lawsuits, accidents, and natural disasters.
A good agent will help you choose the right coverage for common mishaps like hurricane damage. In addition, as a landlord, it’s important to protect yourself from negligent tenants.
6. Property Inspector
A rental property inspection is a good way to track your property’s condition. It enables you to tackle problems early on before they become serious. Generally, there are four types of rental property inspections.
Move-in inspection
- This enables you to assess the property’s condition prior to the tenant moving in.
Move-out inspection
- The move-out inspection is to check whether the tenant has caused any damage to the property.
Seasonal inspection
- Each season brings a new set of maintenance responsibilities. For example, winterizing exterior pipes.
Drive-by inspections
- This type of inspection is done impromptu; you don’t need to notify your tenants about them.
Besides helping you conduct these inspections; a competent inspector can alert you to structural problems and code violations.
7. Real Estate Appraiser
An appraisal is one of the most important processes in real estate. An appraiser can help you when you want to refinance or sell a property.
Basically, the job of an appraiser is to look at your investment property through the “eyes of a buyer”.
When an appraiser comes by, simplify their work by answering their questions and giving them easy access to appliances. This may help your property get a good appraisal report.
Tips on Choosing the Right Real Estate Professional
Know that not all professionals are equal.
Before using their services, it’s important to ask them the right questions. For example:
- Do you have any references or testimonials?
- How much do you charge for your services?
- Do you belong to any professional organization?
- Are you licensed?
- How long have you been working in this industry?
- Do you have any online reviews ?
Roughly speaking, these are the 7 real estate professionals an investor can’t live without. With these professionals by your side, you’re well equipped on your path to becoming a real estate tycoon.
