Most property managers manage accounts for out of state owners.  Other owners may be investors who have purchased property as part of their investment portfolio for their retirement; another is the owner who moves for a job transfer who decides to keep the property because they intend to move back to Las Vegas one day.  By keeping their home and renting it out, they can be assured of not being priced out of the housing market in the future.

When working with investors from out of state, you will need to inform them that by law they must have an emergency contact number for an individual within 60 miles of their investment property.  An investor should contact a property manager before purchasing a property.  Why?  So they will know what the management fees are.  What else should they know?  Some neighborhoods rent better than other neighborhoods.  Why?  They are closer to shopping, commuting or jobs and schools.  Newer and new homes in areas with no shopping or schools and a large number of investors purchasing may take longer to rent.  If there is a lot of inventory for rent, either the time on the market will be longer or the rents will have to be lowered.

How about the owners who need to sell, and they have only owned the home for 6 to 12 months (maybe a little longer).   However, they purchased the property with 100% financing or an interest only loan and maybe they have a pre-payment penalty.  Wow! What do you know?  They have no equity in their property (imagine that).

As a professional in the real estate industry, we are expected to have good sound advice for our clients.  These home owners may be a candidate for property management for several years.  During this time they would acquire some equity and the pre-payment penalty period may expire.