There is a rental management company on this forum that likely can answer your questions. His handle is "Property Manager DB".
To assist in making the numbers potentially work, we would look at the refinance numbers to gauge the cash flow etc. Lenders when qualifying do take into account vacancy, upkeep costs etc. This is part of the qualifying however the next plan is determining fair rent and positive cash flow.
Some of the factors that can help with cash flow is the proper mortgage setup. If you have questions, please do not hesitate to PM or call (403-648-1541). ~ Tim
Originally Posted by PaperBagger'14
Sorry for the necro-bump here but I'm looking for some advice. I have a home right now that I have lived in for ~9 years. I easily have the equity in this house to refinance and make a 20% down payment on a second house. My big worry right now is the rental market, so I am planning on using a property management company (undecided which one). When using a property management company, is there any rental income protection in case the company cannot find tenants? What other clauses are common to find in an agreement with property managers? I'm curious as to the layout of these agreements as I would like some security in this investment. Thanks in advance!