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Every profitable venture comes with complexities that people may have trouble handling, and that’s perfectly normal. This is why professionals in every industry exist—to help you with matters you might struggle with.
In the rental industry, property managers are often hired not just to oversee operations with the level of expertise they can offer, but also because many investors prefer to spend their time elsewhere. On that note, here are the top reasons why hiring a property manager would benefit your business.
Key Takeaways:
- Property managers use expertise in crucial areas such as efficient rent collection and effective marketing strategies, which can help increase visibility and attract quality tenants.
- Property managers possess in-depth knowledge of landlord-tenant laws, which helps owners avoid legal issues and stay compliant with regulations like Fair Housing Laws and local zoning rules.
- By taking over responsibilities like tenant screening, maintenance, and communication, a property manager allows the owner to save time, reduce stress, and focus on other personal or professional ventures.
- A key service of property management companies is providing clear and detailed financial statements, which makes it easier for landlords to track income and expenses, and prepare for taxes.
- Professional property management can improve tenant satisfaction and encourage lease renewals, leading to higher tenant retention. This, in turn, helps the owner earn a more consistent, passive income from their investment.
Efficient Rent Collection
Rent collection isn’t necessarily difficult, but you may encounter tenants who don’t follow rules regarding rent payments, such as doing so late, if not at all. It could be complicated if you’re unsure about how you should tackle the issue. Property managers can enforce lease terms, provide late notices, and issue late fees when needed.
Effective Marketing Strategies
Marketing is not just about posting your rental listing online and hoping for the best. Most of the time, you need to do your research to determine the best pricing, utilize platforms to increase visibility, apply search engine optimization practices, and make your listing photos appealing to potential tenants. Without the proper resources and expertise, you can end up wasting your time and money.
Meticulous Tenant Screening
It’s not just about knowing which criteria to use when screening tenants. It’s also about the amount of work you have to put into ensuring that they are quality tenants before you present a lease agreement. By hiring a property manager, you won’t have to worry about sifting through several applications by yourself.
No Legal Issues
Property managers also know a lot more about landlord-tenant laws than the average property owner, given that it’s part of their job to keep you legally compliant. Between Fair Housing laws and zoning regulations, there are a lot of missteps that can land you in legal trouble. You won’t have to worry about making mistakes or having to consult legal professionals, since it’s already a part of a property manager’s job.
Accurate Financial Reporting
Property management companies will provide you with monthly and annual financial statements so you can monitor how well your investment property is doing. It’ll make it easier for you to track expenses, income, and prepare for taxes. In most cases, the latter is also covered by the property manager you hire.
Reduced Stress
Being a landlord is undoubtedly one of the most stressful jobs out there, especially if you manage more than one tenant or property. People often underestimate the effect stress has on efficiency. If you are overwhelmed, you tend to be less effective in doing your tasks. Hiring a property manager can be beneficial in more ways than one.
Passive Income
Arguably, one of the best parts of having a property manager is earning passive income. With money flowing into your pocket without having to lift a finger, you can focus on other important matters like expanding your real estate portfolio or spending more personal time. Property management fees are a small price to pay for time savings and peace of mind.
Tenant Retention
Since rental income is what keeps your business going, tenant retention and reducing vacancy rates should be your priority. This can be achieved through good property management, where tenants feel taken care of. Professional property management can utilize strategies to boost tenant satisfaction, therefore encouraging lease renewals.
What Should Be Included in a Property Management Service?
You need to be careful who you hire as your property manager, since not all services are the same. Some will cover more responsibilities than others, so you should pick a property management company that fits your rental business’s needs. For instance, Pristine Property Management covers the following aspects of property management:
- Marketing
- Tenant Screening
- Lease Execution & Renewals
- Rent Collection
- Maintenance
- Financial Reporting
- Eviction Protection
What Are the Disadvantages of Self-Management?
Being a DIY landlord is a choice you can make, and many have proven that you can achieve success in doing so. However, there are also downsides that you shouldn’t ignore.
- Property management can be a full-time job. With everything you have to get done in day-to-day operations, you will barely have enough time for personal matters.
- The smallest mistakes can lead to the biggest problems. One example is unknowingly violating a landlord-tenant law, which can lead to legal issues and fees.
- It’s easier to mismanage your finances. When you juggle several sources of income and expenses, miscalculations can happen easily. This can be concerning, especially when handling taxes.
- Your rental business could face high vacancy rates. Without knowing the right way to market your business, as well as maintain tenant satisfaction, you could end up with negative cash flow brought by vacancies.
Rental Property Manager FAQs
What is a property manager, and what services do they typically provide?
- A property manager is a professional hired by a property owner to handle the day-to-day operations of a rental property. Their services can be comprehensive and often include marketing vacancies, screening tenants, collecting rent, managing maintenance and repairs, and handling tenant communication and complaints.
How much do property managers charge?
- Property management fees most commonly range from 8% to 12% of the monthly rent collected. However, additional fees may apply for specific services, such as a one-time setup fee, a fee for leasing a new tenant, and markups on maintenance costs.
How often will I receive updates and financial reports about my property?
- A good property manager will provide regular and transparent communication. This often includes detailed monthly or quarterly financial statements and reports on tenant issues, occupancy rates, and maintenance activities.
How do I choose the right property manager?
- When interviewing potential property managers, it's important to ask about their experience, the number and type of properties they manage, their fee structure, and how they handle tenant screening, communication, and emergencies. Asking for references from other property owners is also a great idea.
What if I'm not satisfied with the property manager's service?
- Before hiring a property manager, you should thoroughly review the management agreement, which will outline the terms of the contract and the process for termination. You should be clear on any fees or notice periods required to end the agreement early.
Choose the Right Professional for the Job
It’s a wise practice to research the property management companies in your area to determine which services will benefit you the most. Pristine Property Management can oversee your rental property in Florida by applying practices we’ve learned in 13 years of service.
Contact us today, and learn what a full-service property management can do for you.
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