Stress-free renting 

There are several options in owning a home. If you are awash with cash, you can always buy or build one anytime. If what you have is just enough for a down payment, you can always borrow from a lending institution for the balance. If you are working for an employer, more often, Pag-ibig is your only option. 

Indeed, choosing a home to live or build a family is always a huge decision. To those awash with cash, their taste or, should we say, lifestyle is a primary consideration. To most of us, however, financial health is always the main consideration.

To some financially healthy, ownership is an investment, it builds their equity. More importantly, ownership, they say, brings about intangible benefits. It is a status symbol, especially when it is inside a posh subdivision. It affords them some bragging rights, it seems.  Of course, that feeling of stability or security also comes with it as nobody can kick them out of their abode. 

However, there are those who look at home ownership as a business undertaking. Apart from their abode, they build one or more to rent out. Some, on the other hand, are accidental owners. Just fortunate to have wealthy parents who bequeath them homes as inheritance. Not in direct need of these extra homes, they rent them out.

Excited of having new revenue stream, most of them are not aware of the usual concerns inherent in the rental business. Among others, securing a good tenant should top the list.  Secondly, since the house is an investment, utmost care of the property is paramount. Also, constant stream of cash is necessary. Meaning, vacancies should be avoid or, at least, minimized.

Yes, it starts with securing a good tenant. If you get a bad one, then, your investment (the house), will be in constant threat. Maintenance will be a big concern. Apart from the cost associated with it (maintenance), collection of rental can be the biggest headache. Constant repair coupled with delayed collection could be an unbearable thought. Clearly, a double whammy. Worse, if built on borrowed money, long vacancies, will be more tragic. 

There is an option though that landlords can go to, professional property managers. With them, these three major concerns will be adequately addressed. They know the market too well and can thoroughly screen all potential tenants. By having the right one, the investment is well secured as good tenants will respect the property and take care of them like they own it.  They also pay on time, therefore, the revenue stream is constant. Accordingly, better returns on property investments.

Also, the property managers regularly inspect the property and ensure that necessary repairs and maintenance are promptly addressed. By doing so, tenant is satisfied and may opt to stay for a longer period. Thus, the most important aspect in rental business, tenant retention, is assured. Consequently, vacancies are also avoided.

Professional property managers, however, come at a cost. Depending on their reputation, the fees vary. Therefore, that is also a constant cash outlay. However, there is another option that most landlords in the USA are going into now. An option where cash outlays are avoided. 

Flock Homes, a startup in Denver, Colorado, has the answer to usual landlord woes. Just up and running in May, 2021 with four homes, it is now gaining traction in the USA. Its target are “landlords of single-family homes with one to four units that don’t necessarily want to be rid of their investment but also don’t want to deal with managing them anymore.” Flock buys the “property from the landlord, who then gets shares in this partnership which owns a bunch of houses.” In this arrangement, “They get to keep all the benefits of owning real estate without any of the burdens such as paying taxes or maintenance.” Or, even property management fees as the landlord becomes a part owner of Flock Homes.

Once the properties are already into Flock, it will take the responsibility of property management. Meanwhile, the landlord gets his equity (documented through stock certificates) and receive his share of the profits quarterly, hassle-free. 

However, optimizing the return on one’s investment property hassle-free doesn’t happen by accident. As landlords in the country hope for the appreciation of their investments and are always looking forward for better returns, a platform like Flock Homes’ is necessary. An opportunity, right? Let’s do it.