Any rental property owner knows that it is a challenge to keep up with the day-to-day tasks of a landlord. A property manager can help lighten the load, allowing you to focus on other things. These are the reasons you need to hire a property manager.
Why You Must Hire a Property Manager
Property management is no easy feat — it demands a level of expertise and a great deal of patience to accomplish seamlessly. Many owners who rent or lease out their properties eventually realize that hiring a property management company is the best way to maximize their time and money.
There are a few tell-tale signs that it is time to hire a property manager. If you are handling too many properties or live too far from the one you currently manage, a property manager can make your job considerably easier. It is also a good idea to outsource the task if you want to make money off of your investment but have no interest in management.
Apart from these, here are the benefits when you hire a property manager:
1. Professional and Experienced
Contrary to what some may believe, good property management is not something just anyone can achieve. Property management involves aspects of marketing, accounting, and correspondence. It requires expertise and experience to pull off without a hitch.
A property management company will have experienced managers trained to handle all facets of property management. Property managers typically take on more than one client, which means they have great multitasking skills, too.
Additionally, the relationship between a landlord and their tenant can be a tricky one to tread. As a landlord, you should keep personal and professional matters separate.
This is often easier said than done, as you may grow too close to your tenant and start offering more leniency. On the other hand, you may develop a contentious relationship with your tenant and begin treating them unreasonably harshly.
With a property manager between you and your tenant, you can prevent such cases from happening. A property manager can maintain a professional atmosphere and handle things matter-of-factly. It is one of the top qualities of a good property manager.
2. Comply with the Law
If you have never managed properties before, there is a good chance you know very little about laws applying to landlords, tenants, and property management. That is one of the main differences between a property manager vs landlord.
You obviously want to make sure you always act within the law, careful not to break any rules that will put you in trouble. But, if you don’t know what the law says, you have no way of knowing when you are in violation of it. A property manager, on the other hand, routinely stays abreast of all related laws, including the Fair Housing Act, the Americans with Disabilities Act, and even down to state and local laws. They have the necessary legal knowledge to keep you, as their client, free from any liability.
3. Advertise Your Listing Better
Filling vacancies is one of the most common problems landlords run into. You cannot rely on just word-of-mouth to find a tenant.
And while social media has definitely made it easier to reach a broader audience, a property manager will still have better marketing tactics. As someone with a long-standing experience in the industry, a property manager will know what mediums to use to market your property as well as how to create a strong copy.
4. Screen Tenants Thoroughly
Even though there are more renters now than at any time in the last 50 years, finding quality tenants can still pose a challenge. Not all renters are made the same. Some consistently pay their rent on time, while others drop off the grid for days on end when the rent is due. You naturally want to go for the former.
A property manager will know how to search for and land high-quality tenants. They will handle everything from start to finish, including checking their criminal background, confirming their credit, and verifying references. You can even ask them to show you applicants so that you can give you two cents in.
5. Set and Collect Rent Effectively
Rent is usually a pain point for many landlords, particularly when determining how much to charge. While there are some general rules of thumb you can follow, those do not compare to what a property manager can do.
A property manager will look at the rental market specific to your location, analyze patterns and trends, and then use data gathered from their research to set your rental rate. They will make sure your rent is high enough to earn profit but low enough so that tenants still find it reasonable. This way, you can fill the vacancy faster and start receiving income right away.
Apart from setting rent, a property manager can also take care of collecting it for you. They will use an effective collection system and ensure tenants settle their payments on time. They can also handle late payments and impose any fees as stipulated in your rental agreement. Some property management companies even offer direct debit in addition to cash and check payments, making it more convenient for all parties.
6. Handle Maintenance and Repairs
Managing and addressing maintenance requests and repairs are just a normal part of a landlord’s job description. But, if you lack the time or tolerance for it, a property manager can take over the work.
A property management company will have a network of trusted vendors, such as contractors, handymen, plumbers, and electricians. Some even have in-house maintenance crews. With professionals handling all your maintenance and repairs, you can keep your tenants happy, preserve property values, and fulfill your duty as a landlord to provide a habitable environment for your tenant.
7. Allow You to Invest in More Properties
If real estate investment is something you want to get into full-time, hiring a property manager can make it easier for you to grow and expand your business. Self-management has many limitations, confining you to a certain area for accessibility reasons.
But, with the help of professional management, you can invest in more properties located in different parts of the country. You will no longer need to divide your time between properties. Instead, your business can run on autopilot most of the time.
How Much Does a Property Manager Cost?
Some property owners balk at the very idea of employing a property manager because they believe it too expensive. However, this is not true at all. In fact, when you hire a property manager, you can maximize your profits in more ways than one.
As for how much property managers charge, there is no blanket answer. It really depends on the property management company you work with. Many property managers will ask for a percentage of your monthly rental rate as payment, usually between 6-10 percent. Others rely on a fixed monthly fee, with the amount dependent on the extent of the services you get.
When interviewing possible candidates, make sure to ask them about their fee structure. It is also a good idea to inquire about any hidden fees. This includes maintenance fees, leasing fees, eviction fees, reserve fund fees, and the like.
More Rewards Than Injury
While the choice is ultimately yours, hiring a property manager clearly has more positive effects than negative ones. Property managers not only have the experience required to carry out various tasks, but they can also save you more time and money in the long run.
Begin your search for the best property management company, HOA management company, or real estate company in your area using Florida Property Management’s directory. We can help you narrow down your options fast.
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