Want to add significant value to your real estate investment? Hire a property manager, as a competent property manager is truly worth his weight in gold.
When you hire a property manager, you have a better chance of getting quality tenants vs tenants that aren’t as reputable. An experienced property manager has typically seen thousands of applications and knows the difference between a quality tenant and a tenant who could end up costing the buyer more money in the long run.
The property manager’s job is to screen each candidate and select the tenant who will pay the rent on time, rent for a longer period of time, put less wear and tear on the unit, and generally cause fewer problems.
Avoid cost and time consuming legal problems
Landlords know that it only takes one troublesome tenant to cause significant legal and financial headaches. Hiring a property manager allows you to come armed with knowledge of the latest landlord-tenant laws and will ensure that you are not leaving yourself vulnerable to a potential law suit.
In addition to federal laws, each state and municipality have their own laws, which cover a number of areas including, but not limited to, the following:
- Tenant screening
- Safety and property conditions of the property
- Lease addendums
- Terminating leases
- Handling security deposits
- Rent collection
Avoiding a single law suit can more than pay for the property manager’s fees, and spare you time and anguish.
Shorter Vacancy Cycles
A property manager will help you perform three critical tasks that affect how long it takes to fill your vacancies.
- Make sure that the property is ready for rent- A property manager will make suggestions regarding cosmetic improvements that maximizes revenue.
- Help determine the best rate- too high and you can wait months to rent, too low and you can lose money every month that the tenant is in the unit.
- Help market the property-an experienced property manager has written hundreds of ads and understands what to say and how to properly advertise in order to get a larger pool of candidates in a shorter period of time. When there is a large number of candidates, a property manager can negotiate cheaper advertising rates both online and offline.
Better tenant retention
Frequent turnover is something that you want to avoid as much as possible. The turnover process involves a thorough cleaning, changing of locks, painting the walls and possibly changing the carpets or performing small repairs, not to mention all the efforts associated with marketing, showing, screening and settling in a new tenant. This is a not only time consuming, but can be very costly as well.
A good property manager will have a time-tested tenant retention policy that ensures happy tenants with lengthy stays in your properties. These kinds of programs require a consistent, systematic approach, which is where a good property manager will be of great benefit.
Assistance with taxes
A property manager can also help you to understand the tax deductions you can claim, as well as to organize the necessary forms and documentation to make those claims. The property manager’s fees themselves are also tax deductible. I’d say that’s a win – win!!!!
Lower maintenance and repair costs
Routine maintenance keeps tenants happy, but also preserves the value of the investment.
By hiring a property manager, you gain access to both the manager’s in-house maintenance staff, as well as his network of licensed, bonded and insured contractors, who have already been vetted for good pricing and quality work. Most of the time, the project manager has established relationships with contractors, who understand maintenance issues. In addition, a manager is often able to get volume discounts on the work. This access to well – qualified people at reasonable rates translates into huge savings of time and money.
Increase the value of the investment
Preventative maintenance is easy to achieve by putting systems in place that catch issues early, before they grow into larger, more costly problems.
A property manager can also offer suggestions on upgrades and modifications, and how changes will impact the amount of rent you can charge, as well as the impact on maintenance and insurance.
NEED HELP WITH YOUR PROPERTY? If you, or someone you know, can use help maintaining property, not only to ensure having the best tenants, but also to be certain that the property is well taken care of, please feel free to reach out to me today. I would be more than happy to serve you.
firstname.lastname@example.org 816-694-4175 (Mobile)
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