A property management firm handles most – if not all – of the various tasks associated with owning rental properties, such as screening tenants and collecting rental fees. A property manager supervises tenant turnover, gathers rental dues, conducts background checks, makes repairs, and performs other chores you’d normally do on your own as the property owner. As one of the property managers, you’ll likely work in conjunction with another member of your team, the property manager, who will be responsible for overall supervision. Ultimately, you run your own business.
Why should investors choose to go with a property management firm over individual renters? The main reason is that a firm typically charges less than an individual landlord or investor would. For example, you can hire one property manager for as little as one dollar per month. On the other hand, individual landlords or investors would need to hire multiple property managers, pay for property taxes, post checks for their renters, make housing inspections, provide housing counseling to tenants, and perform other duties. If you own a large rental property, such as a duplex, it may cost you more than twelve thousand dollars a year to manage it on your own. A property management service may only charge you ten dollars per month.
Another benefit of hiring property managers is that they typically have the inside track on daily operations. They know what tenants are up to when they aren’t there. This allows them to catch problems before they become out of control. Additionally, property managers have the knowledge of the rules and regulations that apply to rental property owners.
If you decide to hire a property management firm for your rental properties, you’ll need to be able to select the right manager. It’s best to choose a property management service that already has a proven track record of success. A manager should be knowledgeable in all aspects of the rental business, including tax law, insurance, tenant rights, and property management basics. If your property management service doesn’t have a background in these areas, don’t hire them. There’s no need to take a chance with your rental properties by hiring someone who has little or no experience.
Don’t hire the first property management firm you come across. Take the time to shop around and interview several property managers. You want to make sure that you’re choosing the most qualified person for the job. The manager you hire should understand all facets of your rental business, including scheduling and budgeting, maintenance, marketing, and financial management. The property management firm you choose should also have the skills and resources to handle a variety of different tasks, including contract cleaning, carpet cleaning, damage repairs, and more. They should be able to work with you on all aspects of day-to-day operations.
One of the biggest challenges faced by modern property investors is maintaining current occupancy rates and increasing rental revenues. However, many property managers don’t realize the importance of maintaining an appropriate level of operational chaos. Some investors mistakenly believe that the more complex the rental process, the better their chances of success. In actuality, property managers need to stay on top of a wide variety of tasks, from scheduling appointments and communicating with guests, to budgeting and leasing decisions. A solid property management team will work to minimize problems in each area and increase profitability.