- Reducing Your Responsibility, Increasing Your Profit
So, you’ve decided to rent your property for the summertime in South Lake Tahoe, California? Most likely you’re not using it as much as you’d like, or you’d like to turn your property into profit.
If you don’t already know that you’ve made a good investment opportunity- good news. You have! There exists a high demand for this beautiful and serene area. But, with this profit-potential comes great responsibility. Speaking from personal experience (as I have spent many long-weekends at my family home in the Southern Shore of Lake Tahoe) there are several reasons why you should look out for your investment.
Let me begin with a personal anecdote.
When my father passed away and I inherited my family home, I decided that I should start renting it out, since my family couldn’t make the drive from the North all the time. So, for six to eight months per year, I would rent it out myself. I would oversee the website, bill payments, visitor payments, cleanliness, basically everything that comes with renting a place. My friends initially were the only ones who would rent my home, which meant that I trusted them with taking care of my historical home, with payments, with security of the home, etc.
But then I realized the profit just wasn’t there depending solely on one or two friends to rent in those months that my family members didn’t occupy the home. So I put my home up for rent online, and the demand was overwhelming. All these strangers were reaching out to me, and I couldn’t keep up.
When someone suggested getting a third-party property manager in South Lake Tahoe, I was skeptical. How could I make a profit if I had to pay someone? How do I trust that they have the same perspectives and intuitions on trusting renters as I? Because these managers don’t physically own the properties, they don’t handle things the same way I would like to. But these were all insecurities that I had to rationalize myself, because the benefits far outweigh whatever I thought the consequences would be.
I never thought having a third party would make a tremendous difference. Not only did the management company I hired take calls from potential tenants, but also met with them, screened them, and managed the payments ahead of time to ensure security. They also formulated contracts, to avoid lawsuits and ensure that my family home was kept in pristine condition.
However, this took time. I didn’t immediately gain what I lost with keeping an empty rental, but over the months, the user-ratings increased due to the way that management kept-up the rentals. Eventually, demand was so high that I managed to pay both the company and my bills with surplus from my family beach home.
The active asset that I inherited on the shore turned into spectacular passive investment. Just like any profit, you must nurture it, and watch it grow. In this case, hiring a
saved me stress, time, and eventually, money.