One of the things you need to consider before you become a landlord is whether or not you should hire a property management company. For some landlords, managing their property on their own is a no-brainer, but for others (particularly those that want to be completely hands-off), a property manager can be their investment’s lifesaver. They’re no longer an additional cost, but an indispensable asset to one’s rental business.
There’s no shame in asking for a helping hand, which is why in this post, we’ll talk about everything you need to know about working with one. By understanding what it is that they actually do, you can decide whether or not hiring a property management agent is the ideal move for your investment.
What is a property manager?
A property manager is a third-party contractor hired by a property owner to oversee the day-to-day activities of an investment property. They can either be a sole practitioner or employed by a property management company.
Their role is to ensure that the rental property is managed according to the owner’s guidelines and goals. A property manager’s duties include screening rental applicants, collecting rent, coordinating repairs, scheduling inspections, and so on. Some property managers also advise investors who wish to diversify their investments.
In short, a property manager’s role is to assist the property owner in achieving their investment goals, whether it’s to generate passive income, increase the property’s value over time, or many more. When a property manager’s services are enlisted by a property owner, the latter assumes a supervisory role. They allow the property manager to manage the rental unit as they deem appropriate, but they may be asked to approve certain tasks.
What happens when you hire a property manager?
When you hire an expert property manager from a firm such as Luxury Property Care, you can expect to put property management on autopilot. Remember, they’ve been in the investment industry for years – by now, they should have the knowledge it takes to operate any rental business.
A property manager’s first task is to know what you want. Investors vary in their goals and since it’s the property management agent’s role to achieve your goals, they need to thoroughly grasp what you want to get out of it. Once they’ve understood what you what to achieve, they will prepare a strategic property management plan that’s custom-made for your specific property.
After that, you can be completely hands-free! They may ask you to approve certain activities, but besides that, you can sit back and wait for your rent to roll into your bank account.
Why should you hire a property management company?
There are several reasons why an investor would hire a property management company. First, not all investors are willing to devote their time and energy to their real estate investments. It’s unarguable that property management can be time-consuming and draining, so having an investment manager by one’s side can help ease the burden.
Second, not every investor lives near their real estate investments. Let’s say you have to go on a long-distance move, however, you own a rental property that you don’t want to give up. Instead of selling it, you could hire a property manager to run your property for you. That way, you won’t be forced to sell your investment when market conditions are likely unfavorable.
Finally, hiring a property manager can improve your ROI in many ways and lead you through a profitable rental business. If you want to be a successful investor, it would be a wise move to hire a property management agent.
What does a property manager do?
A property manager is indeed an additional cost, but it ultimately does not detract you from your bottom line. In fact, the service of a property manager is an investment in itself.
Although the obvious function of the property manager is to collect rent, they actually handle more duties that add value to your investment:
Let’s take a look at the duties of a South Florida property manager:
#1 Market the property
A reputable property management firm has access to advertising platforms that the average investor isn’t even aware of. They’ll be able to market your property better and reach a wider pool of potential renters. They also know what your target market likes and doesn’t like, and this allows them to create compelling listings that highlight the property’s prime features.
#2 Fill vacancies fast
Property management companies can find tenants and fill rental units in no time. They know that an empty property is an investor’s worst enemy, so they make sure to put it on the market as soon as it’s vacant, or when they get word that the tenant is moving out. They list it everywhere to ensure that it stays vacant for the shortest time.
#3 Collect rent
Property managers ensure that rent is collected on time. To do this, they implement a rent collection system that gives tenants several options to pay their rent, such as online payments, check, bank deposits, and so on. Aside from collecting rent, the property manager also collects fees (if any), and chases after tenants that fail to pay their rent on time.
#4 Screen rental applicants
Property management companies typically follow their own tenant screening process. This can include a background check of their credit score, criminal record, employment, and more. A proper tenant screening process guarantees that only responsible individuals get to live in your rental unit.
#5 Coordinate repairs
One of the most time-consuming tasks of property management is conducting repairs. This is because tenants have a lot of complaints that you need to deal with. If you’re a long-distance landlord, scheduling repairs and sourcing contractors can be a challenge. Fortunately, a property management company has ties with the top vendors in the industry – best of all, they can secure their services at a competitive rate.
Looking to hire a property manager?
For many investors, hiring a property management company is a cost that they can do without… until they finally see the benefits of hiring a property manager. Ultimately, a property manager’s role is to get things done and to ensure that your goals are met. With a property management company by your side, you’ll have the chance to secure your real estate investment’s success.
At Luxury Property Care, our expert property managers undergo rigorous training to ensure that they stay up-to-date with industry trends and practices. We do this to ensure that your property is properly managed, whatever your investment goals are.