Are you looking to rent an existing home and not sure if you should manage it yourself? While you certainly can, there is so much to know and do, which is why a professional property management industry exists; to fulfill this need.
In most cases, the do-it-yourself approach simply isn’t practical, is time consuming, and unwise. There are many stories of landlords who have gone at it alone, only to find themselves entangled in tenant disputes, and financially ruined from lawsuits because they were unaware of what’s involved in leasing and managing a property. The solution should be to hire a licensed property manager. Take a look at these seven essential tasks that a property manager does to ensure you maximize your investment.
1. Managing Tenants
A property manager can take care of all aspects of the landlord-tenant relationship. This includes performing routine inspections, handling maintenance, and managing any situations that require conflict resolution. Of course, a property management company can also help find the right tenants for your property.
2. Collecting Rent on Time
Securing payment from tenants can be a difficult and awkward process. Fortunately, property managers have efficient and time-proven systems in place for maintaining on-time payments. This is particularly helpful if multiple properties are owned and cash flow needs to be maintained.
3. Maximizing Your Profitability
Hiring a property manager to deal with the day-to-day aspects of running a property provides more time to identify other investment opportunities, plus, getting these services are offered at a decent price. Most managers charge 6% to 10% of the property’s monthly rental rate, which is a great tradeoff from hiring and managing maintenance workers to take care of the property.
4. Marketing Your Property
Through experience, a property management firm will know exactly how to craft compelling marketing materials and where to advertise the property. This is a huge advantage when trying to avoid long vacancies.
5. Managing Vendor Relationships
Any good property manager will have close relationships with contractors, tradesmen, suppliers, and maintenance workers. For an independent landlord, these relationships are both highly desirable and very hard to duplicate. Other than getting the best work at the best prices, a property manager will oversee any maintenance projects.
6. Setting the Right Rental Rates
One easy way to set rent prices is to look at what other landlords in the area are charging for similar properties. A property manager will go a step beyond that, though: they’ll conduct a thorough market study to figure out the rental rate for the property. This will help achieve the balance between keeping low vacancy rates and maximizing income.
7. Ensuring Compliance
When renting or maintaining a rental property, a host of laws and regulations must be complied with. These include federal, state, local, and fair housing regulations. A property manager will assist in keeping track of these laws and avoid lawsuits.
To learn more about why hiring a property management company may be the best fit or to discuss the services offered by OPAL ESTATE MANAGEMENT, please get in touch with our office today!
