Managing rental property can be financially rewarding, yet it requires a serious commitment of time and effort. While it may make sense to take the do-it-yourself approach if you're a handy person, live close to your property, and don't mind devoting several hours per month to the task, in many cases this just isn't practical.
A PROPERTY MANAGER CAN HELP YOU:
1. Make sure you follow housing regulations and property laws
Did you know that lead paint, radon testing, bedbug and energy disclosure are required? There are a multitude of applicable laws and regulations to abide by when renting and maintaining your rental property. There are local, state and federal regulations, as well as fair housing regulations (such as the ADA). A property manager can help you avoid lawsuits by keeping your property up-to-date and in compliance with these regulations.
2. Set the right rental rates
While looking through the classifieds to see what other landlords are charging for similar properties is a fine way to ballpark your monthly rents payments, a good property management company will conduct a thorough market study in order to set a price for your property. This is a crucial step for ensuring a balance between maximizing monthly income and maintaining a low vacancy rate.
3. Collect and deposit monthly rent payments on time
If you've ever worked in a billing department, you know that securing payment from clients can be difficult, not to mention awkward. Property management companies have efficient, tried-and-true systems in place to effectively collect rent and maintain on-time payments. You'll find this particularly important if you have a limited number of properties and collecting payments on time is crucial to maintaining your cash flow.
4. Market and advertise your property
A property manager will know exactly where to market your property and how to craft compelling advertising materials-
a significant advantage when it comes to filling your properties quickly and avoiding long vacancies.
5. Find the right tenants
Experienced property managers are experts at finding good tenants. They will take care of all the details including securing all criminal background and security checks, running credit reports, verifying employment, and collecting previous landlord references.
6. Managing tenants
In addition to finding good tenants, a property management company will manage all aspects of the tenant-landlord relationship. The property manager will handle both routine and emergency maintenance, take care of routine inspections, and manage any situations where conflict resolution is required.
7. Oversee vendor relationships
Property management companies have an established network of maintenance workers, tradesmen, contractors, suppliers, and vendors. It's almost impossible for an independent landlord to duplicate and can take years of trial and error finding the right network to support your property and tenant needs. Not only will your property manager get you the best work for the best price, they'll oversee any necessary maintenance projects.
8. Invest in geographically distant properties
If you manage your own properties, you're limited to investment opportunities within a close radius of your own home. By hiring a property manager you can take advantage of investment deals in any location you wish.
9. Give yourself more time
By having a property manager take care of the day-to-day aspects of running your income property, you’re free to spend your time identifying further investment opportunities, otherwise furthering your career or enjoying downtime.
10. Maximize your profit
Most property managers charge a percentage of your property's monthly rental rate in exchange for their services. The rate typically runs anywhere from 6-10%, which is generally less than it costs you to outsource each aspect and oversee it yourself. You actually save money by hiring a professional to take care of your property.