Owning investment property is a great way to build wealth. Yet, many owners don't hire a property manager because they don't want a cut of their profits. In fact, this amount is usually around 5-10% of the monthly rent. It's understandable to want to keep your profits and increase your ROI, but there are many benefits of working with a property manager to consider!
1. Saves You Time
Outsourcing property management for your investment is a huge time saver. They have the resources in place to handle those late-night maintenance emergencies. Many companies will have vendors on-call or an on-call service. So this saves you a middle-of-the-night trip to your rental for an emergency repair.
Also, rent checks are handled in an efficient and timely manner. You get your money when you expect it!
2. Work with Tenants
Some tenants are wonderful and easy to work with. Others are more high-maintenance. The challenging tenants can waste your time and put your sanity on edge.
Property managers know how to handle high maintenance tenants. They keep their interactions legal and professional. This ultimately protects you.
Now, many owners will look strictly at the cost to determine whether or not if they want work with a property manager. They don't want to pay someone to do what they can do themselves.
But, hiring a property supervisor is surprisingly affordable. Look at what goes into managing a rental.
- Rent collection
- Filling vacancies
- Qualifying prospects
- Processing and fixing maintenance requests in a timely fashion.
These are the core parts of the job. There are other things they handle, too. In fact, there's so much that goes into managing a property that when you take all this into account, the investment is worth it!
4. Handle Maintenance Requests
Most maintenance requests are pretty minor. Many companies have a maintenance staff on hand that can solve the problem. If something large comes up they have contractors who will handle the issue.
In addition, they process all maintenance request in a way that protects you. Maintenance requests must be made in writing and properly documented. The manager will document the date of the request, record what was repaired, and the date it was completed.
This kind of record keeping keeps owners out of trouble should a tenant try to withhold rent or complain.
5. Fill Vacancies
Vacancies are a part of owning rental property. There are many components to the process.
Qualifying - The prospects must pass the credit and criminal screening. They also must have a good landlord reference and no evictions. The manager must verify employment, too. Finally, rent should not exceed around 30% of the prospect's income either.
Showings - The manager handles all the tours of the home. Marketing experience is a typical quality of a great property manager. They use that to show the home in its best light. They also provide feedback to you if the rental is not filled as quickly as you would like. They work with you to get the unit occupied.
Legal process: You also must abide by fair housing laws during the renting process. Otherwise, you risk a HUD lawsuit. This includes the marketing, showings, qualifying, and lease signing. Many managers will take a fair housing course yearly. This way, they're up-to-date on all state and federal laws.
Preparing the home: Prior to move-in, the unit must be habitable. All appliances must work and there cannot be safety issues within the home. This includes mold and smoke and carbon monoxide detectors.
Security deposits: Security deposits are processed differently than rent checks. They are typically put into an escrow account. Upon move-out, the unused portion is refunded to the resident along with a statement.
Lease signing: The lease signing takes time and is complex. The new resident will likely have many questions about the lease. Managers can explain everything to them.
Keeping the unit occupied with qualify residents is a top priority. Property supervisors know what prospects want in a rental. They can provide you with feedback, so your home is filled faster.
6. They Process Evictions
Evictions are a part of owning rental property. It is a lengthy, legal process that involves going to court if the delinquent tenant won't leave. All notices must be delivered and written in compliance with state and federal laws. One mistake on the date or method of delivery and the judge will throw your case out. You must start over. Managers understand all these laws work to get your delinquent tenant out quickly.
The benefits of working with a property manager are overwhelming! They save you time and money. They make sure your investment remains profitable, so you can grow your wealth. If you're considering hiring a property manager for your rental home, contact us for a consultation. We can answer any questions you may have!