For most new property owners, hiring a property manager seems like an unnecessary cost, especially if you have the time to interact with tenants and deal with repairs. However, property management can actually be a smart investment for most property owners. Generally, a strong property manager can offer resources and abilities that boost your income from properties and save you time. Especially with the accumulation of more properties, property management becomes a time-consuming job, and a management company provides you with consistent tenancy and reliable oversight, even over long distances.
So, when is the right time to hire a property manager? The real question in fact should be, when is it not the right time to hire a property manager? From large commercial and industrial rentals, to small residential apartments, any landlord can benefit from professional management. If you have the capital and are interested in expanding your rental business, a property manager is a valuable, even necessary, asset. There are a variety of services and benefits they will provide:
Pricing and Marketing
A property management company will save you hours and maximize income from your properties with marketing services and rental pricing expertise. A property manager has access to a network of potential renters and tested marketing strategies to ensure you property is always filled with high quality tenants. This also includes professional photography, staging, and showing of the property. They also have enough experience to know the right renting price for your property, especially with management companies that specialize in a specific area. For example, Utopia Management specializes in West coast cities like San Luis Obispo, giving them unmatched expertise on rental prices in those cities.
Rent Collection and Tenant Interaction
For multi-property investors, rent collection and day-to-day communication with tenants is a worthwhile service. This also allows you to invest in geographically distant properties. Your property manager will offer 24/7 direct communication with all tenants, giving them a better renting experience and saving you time. Additionally, efficient and organized rent collection protects your assets. A management company may even utilize a software or online program for convenient rent payment and tracking.
Professional Tenant Screening
Not only does a property manager have access to a large tenant pool, they also provide a thorough tenant screening process to ensure that you rent to responsible and trustworthy tenants. Strong management companies even have a list of contacts waiting for available properties. If they offer the best renting experience for both tenants and landlords, then an association with a certain property manager can actually increase the value of your properties. Having trustworthy tenants protects both your income and your property, as you have a lower risk of property damage or unpaid rent. Comfortable tenants will typically submit timely maintenance requests or notices of damage, ensuring that your property is kept in the best possible condition.
Vendor Relationships
Repairs and maintenance are one of the most time consuming and costly aspects of owning property. A professional management company will have access to a network of trusted vendors for maintenance services. Expansive companies may even receive discounted rates from trusted vendors for long-term business. They can handle the entire maintenance process from start to finish as soon as they receive a request from a tenant. Many companies will have recommended routine checkups at a low cost for things like pest control, plumbing, and the structural integrity of the property.
Lease and Investment Consultation
Just as they offer expertise on rental rates, property management companies are familiar with leasing and local laws. This means they can offer consultation and advice on constructing your lease to best protect your property and yourself legally. As you build a relationship with your property manager, you can also consult them on local property investment options. Over time, a property management company can serve as a valuable relationship that streamlines profits and efficiency.
Legal Representation
In addition to helping you craft the perfect lease, your property management company can represent you in court. This saves you a huge headache in the event of a challenging tenant or a legal dispute. They will remain in full communication with you throughout the process to ensure that they are accurately representing your wishes, and you won’t have to make an appearance in court.
Perhaps the best reason to hire a property manager is that you can decide how they manage your property, how much decision-making power they hold, and how often they contact you. Often times for landlords of multiple properties, a property management company ends up paying for itself by improving efficiency and profit margins of your properties, as well as saving you tons of time that you can spend working or on future investments. A property manager can help you focus on what’s most important and can be an opportunity to expand your portfolio.
