If there’s one thing that all property owners can agree on, it’s that they want to generate greater revenue while lowering their costs. The ideal way to do this is by hiring an expert property manager. You may increase your Return on Investment (ROI) and save time and effort by working with a property manager. Here’re 7 ways how property managers can improve your ROI and lead you through a profitable rental business.
What Does A Property Manager Do?
If you’ve never hired a property management firm, this is a sign that you should. At the core of their duties is property management, which involves overseeing the day-to-day demands of an owner’s investment property, such as a single-family home or a short-term rental. They take over the tasks of a real estate investor, like screening tenants, coordinating repairs, contacting contractors, and more. In a nutshell, what they do is provide convenience to real estate investors that want to earn passively.
How Property Managers Can Improve Your ROI
“I’m confident I can self-manage.”
Sometimes, property owners self-manage because property management seems manageable. However, as you invest in more real estate, you’ll soon see that it’s harder than it is. Additionally, not all property owners can dedicate time to their properties. Whereas hiring a property manager has both pros and cons but the advantages are numerous. Hiring a property manager can help you save time and effort and boost your return on investment (ROI); ultimately accomplishing your goals more quickly.
Below, you will find a few of the ways property managers can improve your ROI as well as increase your profits over time:
#1 They can price your rental correctly
If you price your rental property too high, you won’t be able to attract tenants. If you price it too low, you won’t be able to profit. It’s your property manager’s responsibility to ensure that your rental rates are not only reasonable, but that they also result in a steady income stream. To do this, they conduct multiple tests like a real estate market analysis, which only they can conduct correctly. Keep in mind that property managers have local market knowledge, which is something that most owners don’t have. By enlisting the services of a rental property manager, you can avoid losing potential revenue.
#2 They can prevent vacancies
A vacant investment property can’t survive. Since you rely on rental income, tenants need to occupy your property at all times. Understandably, this can be a challenge for short-term rentals that see seasonal tenants, as well as for owners that rent to students. If finding tenants isn’t your strong suit, you can count on a property management company. Whether it’s managing your single-family property or multi-family commercial property they’ll ensure that your property is always occupied, as well as find new tenants when needed. A South Florida property management company lists your property on popular sites including the Multiple Listing Service (MLS) to find tenants fast.
#3 They can screen your tenants
Even if you don’t have vacancies, your investment still isn’t in the clear. Renting to “bad tenants” is as bad as having no tenants at all. Bad tenants translate to property damage – a landlord’s greatest nightmare. What’s worse is that unstable tenants probably won’t pay their rent on time, as well. To prevent this, property managers conduct strict tenant screenings that involve a background check, credit check, and the like. That way, property owners don’t need to risk renting to tenants that won’t take care of their property.
When choosing a property management company, hire the one with a tried-and-tested tenant screening process in place. As a general rule, property managers should abide by the Fair Housing Act (FHA) as they find information on each rental applicant.
#4 They can advertise your investment property
Not all real estate investors know how to market their investment properties. That’s why property owners should hire a property management company to help them “match” their rentals to tenants. South Florida property managers are pros when it comes to advertising your investment property. They can create compelling listings that include pictures that flaunt the property’s features. In addition, they know exactly where to market your property to find tenants that fit your standards. In other words, they know what appeals to the market.
#5 They can find affordable contractors
Another way that a property manager can increase your ROI is by managing the repairs on your rental property. Finding a reliable contractor can be time-consuming, but with a property manager by your side, you can leave the heavy-lifting to their team. They’ve been in the industry longer than you have, so naturally, they already have a list of vendors that can provide top-notch services at competitive prices. Not only will they make sure that tasks are completed on time, but they will also be the point of contact for contractors and workers.
#6 They can save you from hefty fines
Property managers are well-versed when it comes to the law. Not only do they go through rigorous training, but they’re also able to put the law into practice through the properties they manage. In addition, they continue to read up on state and federal law to ensure that they’re always compliant. From a property owner’s viewpoint, this can save you thousands of dollars in fines and legal fees by preventing common legal mistakes in your rental property. So, if you don’t want to end up in court, partner with a property management company.
#7 They can manage maintenance and repairs
How often do you repair your rental property? Chances are that you conduct repairs only when your tenant moves out. But what if they never move out? A property management company knows exactly what kinds of repairs should be done, and when they should be done. They think of the things that you probably didn’t know needed regular upkeep. They know that preventive maintenance is key.
Even if you genuinely like the tasks of property management, if you want to generate greater revenue, you’ll have to delegate those tasks to a skilled property manager. By hiring a South Florida property manager, you can find more time for more important matters, such as closing on additional real estate. To make the most out of your rental property, let the property managers at Luxury Property Care take care of it all. Call us at (561) 944 – 2992 or contact us online to request an obligation-free quote.