5 Advantages of hiring a Property Manager
How does less stress sound to you?
These are the most evident and immediate benefits of hiring a property manager to manage your investment property. There are dozens more that could be on the following list, but we had to narrow it down to just 5. Read below for the reasons you should consider hiring a property manager to manage your rental property...
1. Get Back Your Free Time
Whether you own one rental property or many, chances are property management is not your special purpose in life. Hiring a property manager is hiring a specialist in the not-so-glamorous aspects of real estate such as: late-night emergencies, evictions, and chasing down rent.
Do these activities sound enticing? Doubtful.
Whether you are a specialist in investment properties and love hunting down the next big deal, or this is your first property that needs to be managed, chances are there is sexier work you could be doing rather than managing tenants and fixing toilets.
2. Tenant Screening
A skilled and experienced property manager utilizes tools to amplify the exposure of your property and screen for qualified applicants. Hiring an inexperienced property manager (or trying to manage the property on your own) can lead to nightmare tenants slipping through the cracks during your screening process.
Qualifications of tenant screening are guided collectively by the landlord and property manager. Setting appropriate screening terms is critical in casting a large enough net to capture tenants, but also not being too restrictive on credit, income, and other policies you choose to enforce (pets, smoking, etc.)
What benefits does an effective tenant screening process, and therefore more qualified tenants, have on you bottom line?
- Increases likelihood of receiving rent on time
- Minimizes wear and tear of the property
- More likely to become long-term renters
3. Low-Cost Maintenance
A Property Manager knows when immediate action is needed for maintenance issues, and has the experience to prioritize tasks. With regularly scheduled inspections your property manager will be able to manage tasks and address small issues before they become large problems.
Experienced Property Managers have a maintenance crew at their disposal, resulting in speed of resolution and minimizing further costs. Additionally, this network will be licensed, insured, and bonded. Property Management is competitive and the network of contractors experienced property managers have built will be efficient and of good quality.
Simply put, vendors within a property managers network will have been vetted to work as efficiently as possible to keep the landlords costs down.
4. Property Inspections
One of the most important tasks for an investment property owner is to have regular and scheduled inspections of your property. Maintenance issues, trashed property, and overgrown yards are a few signs of neglect to be found when performing regular inspections. Inspections uncover information, and this information can be acted upon preventing costs from accruing due to unseen and needed maintenance.
There are four types of inspections your Property Manager will conduct
- Move-in inspection - This inspection is done between the property manager/landlord and the tenant during the tenant move-in process, and it is usually accompanied by a move-in checklist. It is very important to document any issues with the property AND have the tenant sign and date the checklist for further documentation.
- Move-out inspection - The move-in checklist will make it's return in the move-out inspection. It is important that any damage to the property is well-documented. Also, always conduct move-out inspections on the last day of the lease. This way damage done by the tenant attributed to the tenant.
- Routine inspection - A routine inspection should be conducted every 3 to 6 months. This is a great way to stay ahead of any maintenance issues that may be building within the property.
- Drive-by inspection - If the tenant is ghosting, drive-by inspections can be conducted at any time. If the yard is looking out of order, the grass too long, and the tenant unresponsive, a drive-by inspection is likely in order.
Communicating workflows to maintenance technicians, rent increases to tenants, and financial statements to property owners are all tasks that are in the Property Managers wheelhouse. Some common concerns with DIY Landlords are how to communicate rent increases, lease renewals, and negotiation with tenants (without looking like the bad guy.)
Property managers handle multiple units leading to economies of scale. In order to be efficient, a manager is required to have a sound and tested process for nearly every step in the business.
If you are overwhelmed with communication from your tenants and are ready to put your investment properties into auto-pilot mode, it is probably time to hire a property manager.