Why you should hire a property manager?

At some point, every real estate investor will ask themselves if they need to hire a property manager. Many landlords manage their properties on their own or with the help of an assistant, such as a resident manager, but sometimes hiring a property manager just makes sense. A good property management company can become one of your greatest assets–second only to the properties they manage on your behalf.

• Fewer lawsuits and claims:

Landlords face a lot of legal liability. It only takes one problem, with one tenant to have a significant legal problem on your hands and legal problems are time consuming and expensive. Legal claims and lawsuits filed against property owners are at an all-time high. Owning and managing real estate especially income property is not as simple and straight forward as it used to be. In today’s highly regulated and litigious atmosphere, one misstep can land you in legal hot water, embroiled in a lawsuit you never saw coming.

• Higher quality tenants:

The key to long-term profitability in rentals is putting good tenants in your units. Good tenants pay on time, rent longer, put less wear and tear on the unit, and generally cause fewer problems. Good tenants are also much easier to work with when it comes time to fill the unit with new tenants leading to lower vacancy rates and higher profitability.

• Shorter vacancy cycles and fewer vacancies:

One of the biggest impediments to profitability in rentals is having your units go vacant. Just one vacancy can cost you thousands of dollars in lost profits. A good property management company will perform four critical tasks to help decrease vacancy rates: Market your property, Prepare the property for rent, and Recycle tenants quickly.

• Better tenant retention:

In addition to higher vacancy rates, high turnover generates other expenses the chip away at profitability. Every time a tenant moves out a unit has to be thoroughly cleaned, locks have to be re-keyed or replaced, walls have to be touched up, repairs have to be made, and then you have to go through all the expense of finding, screening and settling in a new tenant. The longer a good tenant rents your unit, the more profitable it would be.

• Effective rent collection:

Having a streamlined process for collecting rents and processing late payments is essential to maintaining consistent cashflow and long-term profitability as an income property owner.

• Bookkeeping and taxes:

Property management involves much more than just managing the day-to-day affairs of the property itself. You have to keep track of expenses, itemize deductions, pay bills, keep track of subcontractors, pay subcontractors, send out tax documents etc.

Topics: Asset Management, Property Manager,

Work cited: National Association of Income Property Owners

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