Property management is the process of overseeing the various administrative functions that are required to maintain a rental property.
These roles can be carried out by owner-managers, but it’s often better to hire a professional company to take on this responsibility.
If you’re thinking about hiring a property manager, here are some reasons why it might be worth your while:
What is property management?
Property management companies oversee the daily chores involved with the care of residential, commercial, or industrial real estate.
For a fee, these managers take care of repairs, maintenance, security, and financial responsibilities on the owner’s behalf.
There are many different types of property managers, including those who offer hands-on services and those who simply collect rent and ensure repairs are being done. Property managers can help with:
- Finding and screening tenants
- Collecting rent
- Managing repairs, maintenance, and cleanup
- The drafting, signing, and renewing of leasing contracts
- Marketing properties
- Understanding landlord and tenant laws: Federal and Local
- Handling taxes
Types of Property Management
Some property managers provide services for all three types of properties (residential, commercial, and industrial) while others will specialize in one type.
Residential Property Management
- Single-family homes
- Multi-family homes
- Vacation rentals
- REO properties
Commercial Property Management
- Hotels or other public accommodations
- Retail: malls, restaurants, gas stations
- Office properties
- Co-working spaces: professional rents workspace by day or hour
Industrial Property Management
- Heavy manufacturing facilities
- Light manufacturing facilities
- Distribution centers
- Places of worship
- Senior care centers
- Sports centers
What a good property manager can do for you
- Landlord-tenant laws. Your property owner will be well-versed in all federal and local laws when it comes to rentals. They can manage any property and any issues with that property legally. Decreasing your headaches and costs.
- Take maintenance calls. No more late-night calls. Let your property manager at Austin Property Management Company take that 11 pm call for a leaking bathtub for you. This must be the biggest complaint when people try to break into a passive income real estate business. Even with the best tenants, things break down.
- Control those maintenance bills. Along the same lines as above, your property manager will stay ahead of your maintenance requirements preventing bigger problems that will cost you a great deal more of that passive income.
- Allow you to invest all over the country. Create a passive income empire with no geographic boundaries. Rentals require some kind of local presence and with a property manager, you can buy an investment property anywhere and have them run all the details for you.
- Market your investment. Property managers are highly trained individuals that know how to market your property at the best value and keep it filled. Vacancy means no income, and worse, no profit as expenses will continue anyway.
- Screen potential tenants. Screening tenants is a difficult job; bad tenants can cost you a significant amount of money. Property managers know what a good application looks like and can screen tenants while adhering to all fair housing and discrimination laws.
What are the benefits of working through a property management company?
- Gain freedom and peace of mind as an investment property owner
- Professionally marketed properties that are listed at their best potential value
- Well-behaved, responsible, long-term tenants: long-term tenants mean regular income and no vacancies. Good tenants mean less wear and tear on the property and that’s less money out of your pocket for repairs and maintenance.
- Low vacancy time: professional marketing and maintenance schedules mean when your old tenants leave your property is back up on the market in minimal time and marketed in a way that will draw new tenants in large numbers.
- Collect, secure, and process rents and security deposits: someone else will worry about collecting and processing rents, communicating regarding late payments, and keeping your security deposits in escrow where they belong
- Lower your operating expenses, which means more profit for you: property management companies often have a crew of professionals that work with them on all the properties they manage. This gets you trustworthy work on your property and often a break in costs, sort of a bulk discount.
- Manage any legal problems
A good property manager can help you navigate local regulations.
You don’t have to be an expert on the laws and regulations of your city or the city your property is located in.
A good property manager will know all the ins and outs, saving you time and resources when it comes to getting your rental units up and running.
Legal problems are time-consuming and expensive. This is amplified if your property happens to be in a state that highly caters to the tenant’s rights rather than the landlord’s.
Landlords can be sued for many reasons some of which include:
- Improper and biased tenant screening
- Breaking lease conditions
- Breaking local health and safety regulations
- Inspections conducted outside of legal timeframes
- Improper handling of security deposits
- Improper rent collection process
- Breaking a lease
A property manager can keep all these potential lawsuits at a distance by ensuring that your property is run in line with all the local, state, and federal laws and regulations.
Hiring a property management company will save you time and stress
If you’re like most people, your investment property was designed to be a passive income stream or a side job/side hustle. In reality, investment properties are full-time businesses that will consume your life.
To truly achieve that passive income stream that your desire, hire a property manager to do all that work for you to the best ability and all you must do is say yes or no and pay the bills.
It may seem like a lot to take on as an individual homeowner but hiring an experienced property manager will give you the peace of mind that comes with knowing your investment is in good hands.
You’ll be able to focus on the enjoyment of your home rather than worrying about maintenance tasks and repairs.