Home based business: The future of business across the world!Choosing a home based business is something that leaves many people shaking in fear of being scammed or duped into buying into a business idea that is less than legitimate.While the world is filled with “get rich quick” websites and programs that promise you millions of dollars with just a few hours of work, the reality is that most things that sound too good to be true usually are.That said, there are many legitimate home business programs available, as well. You just need to know what to look for when researching programs to find those that are right for you. No unfounded claims or promises: Legitimate business programs give you straight-up information about what you will need to do to be successful.They will let you know that there is work that needs to be done, and if you follow the system and do things by the book, you will make money and be successful with their program. Scam companies will tell you that you just buy their program and watch the money roll in – nice idea, but not so realistic.Up front about startup fees, investments, and costs: A good program will let you know from the beginning what you will need to spend to get started. Some of the less savory home business opportunities hit you with hidden fees, after you have already invested in their program.While there are often unforeseen expenses in any business venture, these should be minimal when you have found a program that is well organized and successful.Getting started with your home based business: Look for a business model that gives you all of the tools you need to get started on your business right away. You should have access to products, eCommerce tools, and other business resources that will help you to get your website or business set up and rolling, without having to do extra research to find the things you need elsewhere.Offers support, training, and mentoring: Solid home business programs will also give you a support system that you can turn to while growing your business, helping you on the way to finding success.New business owners need the help of someone experienced in business, or educated about their specific program to help them organize themselves and make the right decisions about their new business. Finding a company that offers help like that is the best way to give yourself a solid base when starting your business.Take a long hard look at the business model and resources offered when choosing a home based business plan. Once you find something that has everything that you need to get started, go ahead and make the investment that will get you started on your way to becoming a successful business owner.With a legitimate company behind you, a positive attitude about your new venture, and the right tools in place, you stand a solid chance of becoming a successful business owner.
Property Management on the Rise
When you hire a property management company to serve as the liaison between yourself and your tenants, you want to be sure you’re getting the best possible property management services for the money. The services a property management company provides can range from ala carte to an all-in-one inclusive package. Along with that comes an array of fees for each. There is no set in stone fee structure we can provide you. But we can educate you on what common fees to expect and what each is commonly for. In the end it will be up to you to compare company fee structures and choose the best one that fits within your budget. Below are some of the most common fees and what service they provide.
Commission
This is an ongoing monthly fee charged to the owner to compensate the property manager for the responsibilities of overseeing the management of their property. This fee can vary from as little as 3% to over 15% of the monthly gross rent. In place of a percentage some managers may charge a flat monthly amount which again can vary from $50 to over $200 per month. All property management companies generally charge this fee.
Lease-Up or Setup Fee
This fee is charged to the owner to compensate the property manager for their initial time invested and resources used in setting up an owners account; showing property and/or other activities resulting in tenant placement. I guess you could look at it as a “finders fee” for placing a tenant in your property. Once a tenant has been placed and first rent income comes in, the property manager will deduct this fee from the rent proceeds. Some property managers have been known to require this fee upfront prior to tenant procurement. Usually this fee is non-refundable once the property manager has started the process of tenant procurement or any legwork has been initiated with the property. This fee can vary from none to as much as the first months rent, and usually is a one-time fee per tenant.
Lease Renewal Fee
This fee is charged to the owner when a property manager renews a current tenants lease and covers the costs of initiating paperwork or communication involved in implementing the new lease document. A property manager may also justify this fee if they perform a year end inspection of property. This fee can vary from none to $200 or higher, and may be charged every time a lease renewal is implemented.
Advertising Costs
Depending upon the property management company’s contract, either they will pay the advertising costs or the owner or they could split the costs. If the manager is willing to cover this cost, most likely they will charge the lease-up or setup fee as outline above. If the management company covers this cost make sure to find out what type advertising or marketing of your property is included. If it’s placing your listing on their own web site and other free online classified sites you may not be getting your monies worth. They are many good rental or tenant resource online web sites that bring in qualified tenants for a reasonable fee and you will want to consider these. And don’t forget about print media, yard signs, listing on the MLS or even an open house. Nothing is worst than having your property vacant, bringing in no money only because you or your property manager skimped on advertising.
Maintenance Mark-up Charges
This is one of those costs you may never really of known about or had it disclosed to you. A “Mark-up” is a charge over and beyond the final bill on maintenance and/or repair work done to your property initiated by your property management company when using their vendors or in-house maintenance staff. This should be disclosed in your Manager/Owner contract which usually will state the markup as a percentage above the final invoice from vendor. For example, your manager had to call a plumber to replace the dishwasher in your rental property. Total charges for completing the job: $400. If your property manager contract states you will incur a 10% markup on all maintenance work the actual cost to you will be $440. Just one of those things to be aware of as these all eat into your profits.
Early Cancellation Fee
The dreaded “3 months and no tenant”. Your property manager insist he or she’s doing everything they can to find you a tenant. But here it is 3 months and still no tenant; what do you do. Well, look at your Manager/Owner contract and that might be your deciding factor. I am not a fan of this fee, and believe it to be an unnecessary fee and for you manager out there this could be the deal breaker. I’ll tell you why; if a property manager is doing their due diligence and keeping the owners in the loop as far as decision making, market conditions and communication lines open an owner will not be second guessing his property managers abilities. The odds of this scenario happening is unlikely but you must be prepared for it. A cancellation fee can range from none to over $500. To be fair, some managers legitimately deserve this fee especially if they have pocketed advertising costs, incurred lots of legwork and time invested in your property.
“You’ve Got To Be Kidding Me” Fees – These are ones I have personally had the pleasure of running into.
Your property is vacant, but we still will charge our monthly commission or a small flat fee.
“A For-Rent Yard Sign Fee”. I believe this was $25/mo.
“Preventive Maintenance Fee”. This was to cover the “just in case” and changing out A/C filters. If “just in case” never happens they still pocket the money. I believe this was $20/mo and I still was charged for filters.
In Summary
Read your Manager/Owner contract, understand what you are signing, ask lots of questions and know what the fees will buy you in services. A good real estate lawyer can help in negotiating the terms in a contract that suit both parties. These contracts are not set in stone. If your property manager will not negotiate, there are other property management companies that are eager to earn your business.
Karen McDaniel
Principal
Property Management Profile LLC dba pmvnetwork.com
PMVnetwork offers the most up-to-date listing of full-service property management companies and property service pros nationwide. We have become a wealth of information and resource for the first-time landlord as well as the seasoned investors.
Start An Online Business Or Home Based Business Using Social Media and Create a Second Income Fast
Today many people desire the stability of a second income or the freedom generated by starting a home based business or by starting an online business.Whatever type of business you desire, starting your own business is one of the greatest decisions you will ever make.The freedom and liberation from routine that comes from a profitable home based business or online business is like nothing else you will experience in life.Whether your aim is to provide a full time income to replace the day job, or a second income to supplement your lifestyle, it can all be achieved through the power and versatility of the internet.However, it is estimated that 90% of online businesses either fail or never generate a single sale. The primary reason for this is under estimating or simply not grasping the need to market effectively and reach your target audience.I can talk to you about the importance of keywords and the need to get the basics of search engine optimization correct, but this is for more established site owners and can easily be the topic for a whole weekend of discussion.For new web site and home based business owners the fastest way to start establishing interest in your online business is through the incredible power of Social Media.By far the most widely used social networking site is Facebook. It offers direct access to more than 500 million users and although it’s seen by many as a social site, it does in fact present a huge range of opportunities for online businesses and the home based business community.Facebook is a platform where companies can interact with current and potential customers, and where they can promote their products and services.Recently Facebook has taken steps to actively encourage businesses to use their service, by offering initiatives such as adverts and fan pages. Businesses can set up a company profile or groups and message boards where customers can converge to discuss with one another the service they have received. Like other social media sites, the key here is openness and businesses must be willing to give up a certain degree of control to customers.Keeping content interesting and relevant is crucial to any social media page, and Facebook is no exception. To attract and retain followers or fans, you need to offer exciting content that stands out from the crowd. Consider different forms of content, such as video marketing, audio, pictures or blogs that would most appeal to your target audience.Facebook can also be used as a market research tool, through which companies can poll their fans and measure their reaction to new ideas before applying them to the business.Once your page or group is set up, think about who you want to attract. Start off small by inviting friends and current customers, who will then invite their friends and so on. Social media is an extremely viral form of communication, so don’t expect to have thousands of fans overnight. Discounts and other offers exclusive to Facebook fans or group members can be a great way to generate more followers.If you are considering using Facebook to promote your online business or home based business then consider the following.* Post regular business updates on your wall – it is important to keep content fresh and interesting. But try not to add too many updates because content overload will overwhelm your fans and swamp their news feed pages.* Make use of video or images – keep your page visual as this helps to engage your audience.* Offer discounts and run promotions and competitions – this is great way to increase your following, by providing offers exclusive to Facebook fans.* Carry out market research – Facebook offers a free platform for market research. Poll your fans to find out what they think of your business ideas.* Respond to comments – make sure you reply to questions or comments posted by fans and start developing a dialogue with them. Similarly, reply to criticism, don’t ignore it.* Start discussion groups – encourage conversation about your business. This is an effective way to boost brand awareness, and you can educate fans about your product or service.* Use Facebook ads to increase your fans base – although it’s no substitute for proper engagement, it can help boost fan numbers.* Share blog posts – if you have a company blog make sure you share the latest posts on your Facebook fan page.* Avoid over commercialisation – when sharing interesting product news or offers, try not to be too profit-focused. Social media sites are not merely another sales platform and being overly commercial is a guaranteed way to deter fans.Above all, be upbeat, positive, newsworthy and honest. Nothing deters potential clients more than negativity and false claims.Have fun with your new home based business and remember that it is simply a vehicle to drive you to where you want to be in life.