In real estate, the bigger the property, the bigger the responsibility. Fortunately, by partnering with a building property management company, your role as a landlord will become more manageable. Below, we tackle why working with a building manager is non-negotiable for any multi-family property owner, plus the common duties of a property management company.
What Is a Building Property Management Company?
A building property management company takes on the many tasks of the property owner. In the most basic sense, they undertake all of the tasks that the owner would otherwise have to do themselves. This frees the property owner from unwanted duties, and through their expertise, is one way to make sure the property stays profitable. Building management companies manage a variety of investments such as condominiums, rows of townhomes, and many more.
Why Might You Want to Hire a Building Management Company?
By now, you’re probably aware that managing a real estate investment can be a labor-intensive obligation. Multi-family properties, in particular, need more maintenance, meaning they demand more of your time, money, and energy. Because managing a building is such a big operation, you might not be able to go it alone. If you do, before long, you will find yourself feeling overwhelmed. Fortunately, property management companies can help. Here are a few reasons why you might want to get a building manager in South Florida:
#1 You Don’t Have the Time
Most rental property owners treat their multi-family properties as a secondary source of income, especially if they’re new to the world of real estate. The problem is that buildings are a full-time commitment as there’s more to manage. The only logical solution would be to work with a company that can undertake routine duties. By doing so, you will no longer need to deal with landlord duties. You can set aside your time for more important matters.
#2 You’ve Invested in Multiple Properties
If you’ve invested in multiple properties, you might be having a hard time managing them at the same time. Remember, the more properties in your portfolio, the more responsibilities you’ll have. The risk of self-managing multiple properties is that you won’t be able to give every single one of them the care they deserve. And chances are, you’ll overlook certain details. By working with a building property management company, you’ll be able to delegate your tasks and make sure all of your properties are well taken care of.
#3 You Live Far From Your Building
You don’t have to be at your building every day, but you do have to be available to deal with maintenance-related matters. However, if you don’t live nearby, you won’t be able to do this. A building property management company can be on-site at a moment’s notice to deal with tenant concerns or to show the property to potential tenants. That way, you won’t have to take time off to visit your property, and your tenants won’t have to grow impatient.
#4 You’re Feeling Overwhelmed
Being a building owner means you have more things to do, and more tenants to deal with. If you’re self-managing, don’t be surprised if you start to feel overwhelmed by everything you’ve got to do. To take that pressure off, partner with a property management firm to whom you can pass on your tasks. All you’ll have to do is wait for your rental income to come in every month.
What Are the Benefits of Hiring a Building Management Company?
Now that you know why you should partner with a building management company, let’s unpack what they can do for you:
#1 Increase Occupancy and Ensure Tenant Quality
Most property management companies get paid a percentage of the rental income that you collect. Without tenants, they won’t get paid. With that said, you can count on them to find tenants fast. Not only that, but they’ll also screen them to make sure you only rent to tenants who can pay on time. They do this by conducting a background check, credit score check, and so on. They know that if they rent to the wrong tenant (one who won’t pay on time), that means they won’t get paid on time, too.
#2 Ensure Compliance and Accuracy in Record-Keeping
You’ll never have to second-guess compliance when you partner with a building management company. The company employs professionals who are well-versed in all rental laws such as the Fair Housing Act (FHA) and the Consumer Protection Law. That way, you won’t have to figure out the law yourself. And in case legal concerns do arise, the company can offer legal guidance through its network of real estate attorneys. Furthermore, property management companies will keep up-to-date and detailed records of work orders, rent payments, expenses, etc. to make tax season go smoothly.
#3 Rent Collection and Tenant Management
Collecting rent from one tenant can be a headache. Imagine having to collect rent from multiple tenants. Building property management companies can help collect rent including late rent payments (plus fees) and impose penalties on non-paying tenants. Many of them use property management tools to aid them in collecting rent on time and reminding tenants that their rent is nearly due. These tools can also be used to communicate with tenants and streamline the company’s day-to-day operations – something that “modern” tenants will appreciate.
A good building management company will also be ready to deal with tenant concerns at any time of the day. They will also build friendly (but still professional) relationships with tenants to make them feel more comfortable. Generally, tenants are more willing to stay for the long term when they have a personal connection with their property management company.
#4 Assist in Budgeting and Administrative Tasks
Buildings are more expensive to run, which is why it’s critical to work with a building management company that can help create (and commit to) a budget. Not only do they know what expenses to expect, but they can also find ways to lower your current costs. For example, if you’re spending too much on your service providers, they can more cost-efficient solutions such as hiring cheaper vendors (without compromising the standard of work, of course).
Property management companies can also perform administrative duties that involve more mundane things such as coordinating with contractors, responding to emails, and more. In addition, many property management companies employ their own CPAs so you won’t have to hire one yourself.
Reliable Building Management in South Florida
If you’re struggling to get things done, consider partnering with a building management company in South Florida. At Luxury Property Care, we have extensive experience in managing multi-family homes in the Sunshine State. Our experts can mitigate building management’s many challenges, and ultimately, help you improve your return on investment (ROI) over time.