If you've owned income property for any length of time, you know that managing a rental can be financially rewarding. At the same time, you've also likely discovered that property management requires a large commitment of time and effort.
You may want to have property in many different locations, and take occasional vacations without worrying about unforeseen problems that you may not be able to take of while away. Especially if you hope to expand your business. With this in mind, here
are some essential tasks a property manager can help you with:
- Determining the right rental rates: While searching online to see what other landlords are charging for similar properties
is a fine way to ballpark your rent price, a good property management company will conduct a thorough market study in order to set a rental price for your property, ensuring that you achieve the perfect balance between maximizing monthly income
and maintaining a low vacancy rate.
- Collecting and Depositing monthly rental 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.
- Marketing and Advertising your property: Through experience, 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.
- Finding the right tenants: Experienced property managers are experts at finding good tenants, and will take care of all
the details, including the securing all criminal background and security checks, running credit reports, verifying employment and income, and collecting previous landlord references.
- 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.
- Managing vendor relationships: Property management companies have relationships with maintenance workers, tradesmen, contractors,
suppliers, and vendors that it's almost impossible for an independent landlord to duplicate. Not only will your property manager get you the best work for the best price, they'll oversee any necessary maintenance projects.
- Ensuring that you're in compliance with housing regulations and property laws: There is a multitude of applicable laws
and regulations to abide by when renting and maintaining your rental property. These include 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.
- Enabling you to invest in geographically distant properties: If you manage your own properties, you're pretty much limited
to investment opportunities within a tight radius of your own home. By hiring a property manager, you can take advantage of investment deals in any location you wish.
- Maximizing the profitability of your time: By having a property manager take care of the day-to-day aspects of running
your income property, your free to spend your time identifying further investment opportunities or otherwise furthering your career.
- Maximizing the profitability of your money: Most property managers charge a percentage of your property's monthly rental
rate in exchange for their services. The rate typically runs anywhere from 8-12%.
Courtesy of allpropertymanagement.com