So you’re wondering if you need a property manager. Not all rental properties do. But, if managing your property is causing you confusion or stress, it’s a good idea to consider your options. Buildium’s 2021 Property Owners’ Report gives insights into the needs of rental property owners. Their research showed that rental owners' demand for services from property managers increased 4.3% between 2019 and 2021. In other words, property owners just like you are relying on property managers for more services than ever.
First, let’s discuss what exactly a property manager does. Then, we’ll dive into some of the reasons you might want to hire one and the different types out there. Lastly, we’ll go over some extra benefits that a property manager can provide.
Professional property managers can wear many hats. Your property manager’s responsibilities will ultimately depend on your specific needs, however, a property manager can take care of all the tasks associated with running an investment property, from day-to-day tasks to finding new tenants.
When it comes to managing a property, you’ve probably noticed that mundane, everyday tasks can add up. Property managers can shorten your to-do list by taking care of things like rent collection, managing the accounting and bookkeeping, scheduling landscaping, and addressing tenant complaints. In other words, they allow your property to become a truly passive source of income.
With any luck, your properties won't need any major repairs. Still, it’s inevitable that your tenants will occasionally need the services of a plumber or electrician. If you’ve been on the receiving end of late-night phone calls for maintenance requests, you might be relieved to pass those calls off to a property manager. Property managers have a fully vetted list of contractors at their disposal to take care of all maintenance needs, fast. In other cases, property management companies have their own, in-house maintenance team that they directly manage. In this case, maintenance requests are handled with even more speed and efficiency. With a property manager keeping tabs on your investment, you can also be sure that your property will never fall into disrepair. They’ll make sure that gutters are cleaned, roofs are repaired when needed, and water heaters are inspected, so you won’t have to.
Finding tenants can be one of the more challenging parts of being a property owner. The process of finding new tenants is time-consuming, frustrating, and stressful. Finding a tenant involves conducting market research on rents of comparable properties, completing background and credit checks, asking for references, drafting a new lease, and more. And what happens if your choice of tenant doesn’t pan out? Property managers have the ability and know-how necessary to make this process efficient and effective. Your property will be rented quickly to responsible tenants, making your investment more profitable.
Unless you are a lawyer, understanding the intricacies of rental laws can be overwhelming. As you probably know, there are specific laws pertaining to tenant and landlord rights on a national, state, and local level. If you are managing your property yourself, it’s important to know what your obligations are as a landlord and to stay on top of any changes made to the laws that address these responsibilities. A property manager tracks that information so you don’t have to deal with all the red tape. For example, if your tenant wants to break their lease early, your property manager will know how to proceed based on what local and state laws require of landlords in that situation. In the ever-changing rental climate created by the recent pandemic, it’s become clear that staying up-to-date on renter and landlord rights is crucial.
One of the ways you can help your property stay profitable is to occasionally upgrade it. For example, prospective residential tenants are attracted to properties that feature new, energy-efficient appliances and upgraded bathroom fixtures. Having your rental property improved in these small ways can allow you to raise rent prices while still attracting tenants. A property manager can oversee the hiring of contractors and any construction necessary. They’ll also be able to help you create a budget for your capital improvements and stick to it.
While you may be managing your property on your own just fine, there are many reasons why hiring a property manager may be the right decision for you.
If you have a “day job,” you have to place a premium on your personal time. A nine-to-five job takes up enough of your life. Hiring a property manager will free up your time, allowing you to earn money on your property without overcrowding your schedule.
If you’re new to the world of real estate investment, the learning curve can be steep. From learning how to conduct market research to developing a network of trusted maintenance workers, there’s a lot to take on. Hiring a property manager can relieve you of the stress that comes with learning a new trade. Plus, you’ll avoid the pitfalls that can come with being a new landlord, saving you money in the long run.
If you’re having a difficult time filling vacancies, a property manager can help you out. A property manager can handle the leasing process from start to finish. First, they’ll know the rental market that you’re dealing with. They’ll know how and where to market to renters. They’ll also know how to price your rental properties so that renters feel like they’re getting a fair deal and you’re making a profit. Then, they’ll oversee a deep cleaning of your property, stage it so it’s attractive to potential renters, and make sure any and all cosmetic repairs are completed before potential renters come to visit. After leading a series of showings, they’ll be able to help select potential tenants and gather all the necessary background checks, credit reports, and rental histories needed to make sure you’re renting to reliable tenants.
Many landlords first get into real estate investment in their 20s and 30s. Eventually, those young investors grow older and many move away from their investment properties, making the job of being a good landlord a bit more complicated. In this instance, hiring a professional property manager is the perfect solution. A local property manager will be able to keep tabs on your property, stay up to date on local market changes, and be your eyes and ears on the ground so you can sit back and relax.
If you think that hiring a property manager may be right for you, please Contact Us at Perpetual Property Management for a free 30 minute consultation. We'd be happy to assist!