How Do I Collect Rental Income From My Ocean City NJ Property?
Congratulations if you’ve decided to buy a home or condo in Ocean City NJ! You might still be thinking about buying and that’s fine as well… Many buyers in Ocean City are previous renters and plan to rent their new investment for income. However, you might not be familiar with how the rental business works (behind the scenes).
The short (as possible) answer is below… Please contact me for a more in-depth explanation.
As an Ocean City property owner you’re welcome to list with as many real estate rental offices as you’d like. A common misconception is that rental listings are exclusive like a sale listing. In most scenarios, this is not the case. In fact, it is to the homeowners benefit to list with multiple agencies. I typically recommend 3 strong offices. This way you are receiving the maximum tenant exposure and online presence. Of course, you’re always welcome to rent on your own (by owner) as well or in addition to being listed with the local real estate offices of your choice.
The real estate offices job is typically to advertise and exposure your property online. They will also make your property available to their large database of tenants. Once a tenant is found the office will notify you- the owner and the other cooperating real estate offices. The rental agent will prepare a lease and payment schedule. The agent or office will then handle receiving the signed lease and payment to distribute back to the property owner. This can be done by mail or email in most cases. The rental agent and office will also handle the tenant’s questions and concerns. Finally, the office will “check in” the tenant, distribute keys, and go over any rental regulations. In most cases, the tenant will be asked if they would like to “rebook” after their stay at the same time they return their keys.
Rental offices will typically charge a commission of 12-14% (of total rental rate) for their services in procuring a tenant. The tenant will also be responsible for paying a security deposit or insurance fee which will cover any accidental damages during their stay. Don’t forget that by paying a commission the rental office is working for YOU the property owner!
Alternatively, many owners are having success with the rent by owner websites such as VRBO.com and Airbnb.com. These websites will still charge you a service fee for procuring the tenant (they have different plans/fees available). Some owners will supplement their broker rentals with these websites and use a combination of real estate offices and rent by owner websites. The choice is really yours and how much involvement you want to have.
As you the owner you still have many responsibilities even when working with a local real estate/rental office. You must hire a cleaning service to keep the property cleaning during Saturday change overs. This change over period is typically between 10am-2pm on Saturday’s during the summer season. It is also a smart idea for a property owner to have contact information for local service people they trust. If a tenant has a plumbing problem, for example, the tenant will notify the rental office, the rental office will then notify you (the property owner). It will often be your responsibility to hire a reputable repair person to fix these issues for a tenant. The tenant’s satisfaction is a top priority, as repeat tenants can really help your rental business. Rental offices typically will have trustworthy service people to recommend if you do not already know somebody.
Still looking for a property with great rental income? Take a look at some of the homes and condos here!