Top 10 Reasons to hire a GREAT property manager

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Top 10 Reasons to hire a GREAT property manager

Filling Vacancies – To advertise, take phone calls on, and show rental vacancies is an enormous effort. You must keep advertisements fresh, people call ALL THE TIME, and they tend to be late for showings or not show up at all. A property manager knows the market, knows how to utilize and implement effective advertising, and will put forth the consistent, full-time effort to find the right tenant in the shortest amount of time.

Tenant Screening – Bad tenants can cost thousands of dollars in lost rents, damage, and legal fees. Good tenants make owning a rental property satisfying and profitable. A professional property manager knows how to recognize the difference and has the tools and skills to screen the bad from the good. Just knowing the rental unit is professionally managed is enough to dissuade a problem tenant from calling or applying because the tenant understands their credit, rental history and references will be scrutinized. A qualified tenant is worth every penny you pay to the property manager in management fees.

Compliance with the Law – Every year, more regulations pass in the rental industry. Staying out of trouble requires strict compliance to fair housing laws, municipal ordinances and codes, disclosure requirements, and more. For example, if you own a rental property built prior to 1978, did you know you have to make a disclosure to the tenant and provide them with the pamphlet entitled “Protect Your Family From Lead in Your home?” Do you understand what classes of people are legally protected? There are many much lesser known laws landlords need to know and comply with to avoid costly fines and legal fees. Let a professional property manager navigate the complexities of today’s rental industry.

Rent collection – As a rental property owner, you have a lot of expenses and you absolutely depend on the rent to be paid on time and in full. When a tenant is late with their rental payment, you have to be right on top of the situation. Many landlords just simply don’t know what to do. A professional can be strict, knows when and how to serve the proper notices, and will insist on late fees. They can document all communications and build a case against the tenant should the situation escalate to an unlawful detainer suit.

Inspections – Both regular drive-by and interior inspections of your rental unit are important to verify the tenant is maintaining your property clean and orderly. For absentee owners in particular, this is difficult to do. Even owners living near their rental units fail to complete regular inspections simply because life is busy and these inspections continually fall to the bottom of their priority list. A good property manager will handle these inspections for you. Warnings and notices will be given to tenant if corrective action is needed or a “pat on the back” will be given to the tenants who are doing what they are supposed to be doing.

Maintenance – Repairs and maintenance are a reality of owning rental properties. These problems seem to always come at inopportune times and can really be an inconvenience. If you can’t fix it yourself, finding a contractor who you can trust, and who will charge a fair rate, is difficult. This is when a property manager can save you hundreds of dollars. They have a complete network of vetted contractors and suppliers who are licensed and insured, anxious to do the work, and competent. Because these professionals are doing hundreds of jobs a year for the management company, they offer rates that are not available to the public. These savings are passed on to you. Let a property manager respond to the call in the middle of the night, coordinate the repairs, and inspect the work.

No tenant interaction – Some tenants mistake the lease agreement for adoption papers. Their problems suddenly become your problems as the landlord, at least it can seem that way. A property manager provides a barricade between you and the tenant. When difficult situations arise, you are able to make decisions based on good business sense not on emotion. When you have met the tenants personally and have seen their kids, this influences your thinking in ways that are not always right for you. Property managers have feelings too; they just have a job to do. They will handle the lease enforcement issues and tenant “drama”, and will set clear boundaries with the tenants so you don’t have to. You can trust they will represent you with professionalism.

Tenant relations – The number one reason tenants move is they feel the landlord is not responsive to their needs. The landlord will not perform maintenance or is constantly violating the tenant’s privacy. Some landlords are not available and communication is difficult. Even though moving is costly, tenants will not likely renew the lease with a landlord who is doing a poor job of managing the property. Avoiding turnover is crucial for profitability. Good property management companies treat their tenants with respect and dignity in the same way they treat their clients. Tenants don’t like to move. They are eager to renew when their needs are met.

Accounting – Without carefully tracking your income and expenses on your rental units, how do you know if your investment is profitable? A property management company will collect all rents and fees and pay maintenance and other charges for you. At the end of the month, you will receive a statement that will show you exactly how well your property is performing. Having an accurate accounting of all income and expenses for your property makes it easier when you file your taxes.

Time – When you purchased your first rental property, did you see yourself as a landlord or a real estate investor?  Probably, as an investor. Unfortunately, you are spending too much of your valuable time taking care of plumbing leaks, showing vacancies, and dealing with tenant needs. STOP BEING A LANDLORD!!!!! Instead, spend more time with your family or on long neglected hobbies. Managing your rentals is not a high pay-out activity. Once you experience the services of a professional property manager, you will feel a desire to become the real estate investor you originally imagined. Spend time on looking for your next real estate investment. How much is your time really worth? The value of your time definitely exceeds the cost of hiring a competent property manager.