Real estate investors are faced with a seemingly unending list of decisions to be made. Which property will make the most profit? Which neighborhoods are up and coming? How extensive should the repairs be? Who can make needed repairs quickly? One of the most important questions is, “Should I work with a property manager?” Nearly every investor is capable of handling the tasks a property manager will. But just because you can, doesn’t mean you should have to. Here are five benefits to working with a property manager.
Complete Property Management
A good management company handles nearly every aspect of that rental property. This starts with finding a quality tenant and continues through final walk-though inspections before that tenant moves on. While investors generally focus on getting that property to the rental market, this is really just the beginning of the process. A good property manager has the experience and the team in place to take care of every step. This includes collecting rent, coordinating repairs, and even helping with eviction proceedings if necessary.
Property Manager as Time Manager
Experienced investors know there is a significant difference between a single rental property and a larger portfolio. As a portfolio grows, time management becomes even more important. Many investors have horror stories of what happens when one property becomes a nightmare. When you find you are devoting a large percentage of your time to one problem, others start to arise. With a property manager on your team, you have another resource to handle problems quickly and efficiently. Instead of dealing with angry calls and late rent, you can be looking for the next investment property. Spend your time growing your business while a property manager handles the details.
Most issues that pop up during a lease agreement are straightforward. After all, if a pipe bursts, there are only so many options to remedy the situation. The bigger potential pitfalls occur before the tenant signs the lease. Even in strong rental markets, you must take steps to ensure high quality applicants are identified and screened. Property managers thoroughly review applications to find you the best tenants.
Repair Cost Management
As the investor, you are responsible for the expenses that come with owning investment properties. A property manager helps you get the most for your money. Most managers have spent years in the business building relationships with contractors, plumbers, and other repair people who can get the job done right for a fair price. Those savings add up over time, allowing you to be as profitable as possible.
Beyond saving you money on repairs, property managers track where your money is going each month. They provide outlines of your monthly expenses, which can be eye-opening for some investors. Lawn care, HOA fees, utility payments, and pest control can add up. With a property manager helping you track these expenses, you will be more aware of how and where your money is being spent.
Managing rental properties is complex. Property managers help streamline the process. Many investors look at the cost associated with a management company—generally either a set monthly fee or a percentage of the rental income—as money well spent for the peace of mind that comes with having a skilled partner on the team.