Dear Property Manager:
I recently bought an investment property--the building my office was in (I am a CPA) and I have been renting out the units. This has become too difficult a task for me to do on my own, but I am not sure if the next step is hiring someone part-time (I don't think it is a full-time job...) or find a property management company.
Can you help give me some information on the benefits of hiring a property management company?
This is a great time to invest in property, but as you have learned, managing and maintaining that property can be quite an undertaking. We have compiled the Top 10 Reasons to Hire a Property Manager to explain some of the benefits for you.
Top 10 Reasons To Hire A Property Manager
1.) Money: Collecting money from tenants and making deposits can be a huge headache. Not to mention make you unpopular, or put you in an awkward position (especially since you have an office on the same property!) A property management company will have a proven and tested system in place to collect rent and maintain on-time payments.
2.) Legal: There is a many laws and regulations that you are going to need to abide by when renting and maintaining your rental property. There are local, state and federal regulations, and a property manager can help you avoid legal problems later by keeping your property current and in compliance with these regulations.
3) Rental Rates: A property manager can insure that your rental rates are competitive--they know the market and how your property stacks up, so that you can keep your investment full and bringing in cash flow.
4.) Marketing: A property manager will bring experience in offline and online marketing, as well as local direct mail, and other advertising opportunities. This will increase the exposure of your properties, and work to keep them filled.
5.) Inspections: A property manager will coordinate routine inspections before a tenant moves in and after a tenant moves out, which can find problems before they grow into huge expenses, and make sure they are repaired in a timely manner.
6.) Finding Tenants: Securing tenants can be a time consuming process. Depending on the extensiveness of requirements for your rental properties, a property manager can take care of securing all criminal background and security checks, credit reports, employment verification, and previous landlord references. In addition all tenant disputes, conflict resolution and emergency maintenance will all go through a property manager, who will involve you at his or her discretion. In addition,
7.) ROI: Most property managers charge a percentage of the monthly rental rate which can range anywhere from 6-10%, however, given the professional expertise and services provided coupled with time saved, gives you a positive return on investment.
8.) Time: A property manager handles the routine daily tasks of property maintenance, freeing you up to focus on your other interests and responsibilities.
9.) Distance: If your investment property is located in a different city, or state...or even across town, a property manager can handle any issues that come up, and be there without you having to make a long trip.
10.) Vendor Relationships: A property manager has relationships with the best vendors in town. You need to work with maintenance workers, landscapers, supplies and contractors, and you can leverage the property manager's experience to save time and money.
I hope that this gives you the breakdown of property manager benefits that you were looking for. If we can answer any more questions for you, please give a call at 803.802.0004.