Today’s blog is about why you should hire a professional property manager. The detailed realities of running an income property can become overwhelming. Most professional property managers can handle the day to day tasks of running your property. Management companies will charge a percentage of the rent to cover management and leasing fees. These costs may seem high but they are actually nominal when you consider all of the services a property manager provides. To help you decide if hiring a professional is right for you, here are some things to consider.
Collecting and Depositing Rent
Housing payments are a well known and essential element of modern living. However, it’s surprising how many people actually forget to make that payment. Securing payment can be difficult and at times awkward. A property manager has systems in place to collect on time payments and to follow up on any payments that are late. Not maintaining consistent payments can undermine your entire investment strategy especially if you have to continually put your own funds into that account.
A property manager knows the market and can make sure your rental rates are competitive. This is key to securing and maintaining good tenants.
Housing Laws and Regulations
As we have mentioned in a previous blog, there are a number of laws governing income producing properties. You have to pay attention to the local, state and federal laws such as fair housing and the American with Disabilities Act. Professional managers should be well versed in all the statutory requirements and help you avoid lawsuits by keeping you in compliance.
Marketing and Advertising
Property managers have access to a multitude of advertising and marketing strategies. With the right mix and timing, your property will get the greatest exposure and you’ll find a good tenant. Vacant properties cost money and you want to avoid those costs.
Regular inspections are part of what property managers do as well. Most inspections take place before the tenant moves in, throughout the lease and after the tenant moves out. These visual inspections allow managers to identify problems and have them resolved before they become expensive.
Finding good tenants can be time consuming. It’s not unusual to show a property a dozen or more times before securing a qualified tenant. There’s also the process of screening tenants. Processes and systems must be in place to do credit and background checks, verify employment and conduct landlord references. Property managers will also help with tenant disputes and problems and deal with any repair or maintenance issues you have.
You can benefit from the relationships property managers have developed with vendors, contractors and other professionals. You’ll get quality work at the time it’s needed.
If your property is located in a different city or state, it can be difficult for you to manage that property. A locally based property manager can help tremendously. They can be where you can’t.
A property manager will manage all of the day to day tasks, giving back your time. It’s important to ask if managing your property is the best use of your time.
If you have any questions about this information, please contact us at Bayside Management.