So. You’ve purchased an investment property and you aren’t sure what to do next. Find tenants right? Well, if you own investment rental properties – residential or commercial – I think your first stop should be to hire a good property manager. And I’m not just saying that because I AM a Property Manager. Here are several reasons to hire a Property Manager.
More Money. Who Doesn’t Like More Money?
Many landlords scoff at hiring a Property Manager because of the cost but over time, a Property Manager can actually bring you MORE money.
Having a property manager will mean your property will receive better care. With constant inspections and maintenance, your property will continue to look good over time and will attract higher quality tenants which then results in higher rent collection, less maintenance issues, and tenants that stay longer.
A Property Manager Knows the Law
In housing, there are a lot of laws. The Americans with Disabilities Act (ADA) and the Fair Housing Act (FHA) being one of the biggest. These laws are also difficult to understand. Knowing the Federal, State, and local housing laws like a Property Manager does enables you as the landlord to avoid some legal pitfalls. Having a better understanding of these laws allows a Property Manager to avoid breaking discrimination laws when screening and selecting tenants. Should the Property Manager need to evict a tenant, they better know how to handle the situation and save as much time and money as possible.
Time Is Money
You bought an investment property as just that – an investment. You should be making money from your investment. And time IS money. How much time are you as the landlord spending managing your investment property?
It takes a lot of time to collect rent, enforce late fees, deal with complaints, field tenant questions, find vendors, call maintenance, deal with bad tenants, prep for new tenants, screen and select tenants, accounting, etc. It takes a TON of time. It may even become a major source of stress for you. Turning over these tasks to a Property Manager would allow you to benefit from your investment without detriment to your time and health.
Screening the Applicant Pool
A good property management company will have fairly robust screening and selecting procedures in place. Experienced Property Managers are better equipped to screen and select potential tenants and help to ensure a unit is occupied by good tenants.
Property Managers also have larger pools of candidates because of the marketing and advertising that is done. Often, they have tenants on a waiting list. That means better quality tenants to fill your units faster.
Setting Appropriate Rents
There is a delicate balance between under priced and over priced with rental properties. Under priced and tenants do not stay long which results in more repairs and a higher vacancy rate. Over priced results in taking longer to find tenants which means longer you are not collecting rent.
Sure, you as the landlord could just look around and see what other places are charging for rent but much like real estate, rent prices vary between blocks and city areas. An experienced Property Manager will be able to do an in depth rent analysis and appropriately price your investment property to maximize both profit for you and ensure quality tenants.