You may be wondering why new property owners need a property manager in 2023 when they can do the job themselves. Well, property management calls for a large commitment, effort, and time. While it still makes sense to take the do-it-yourself route, things rarely go as expected, especially if you intend to increase the number of properties and expand the business.
As a new property owner, you are better off hiring an experienced property manager, as they will help you maximize revenue from your investment while increasing the value of your properties.
Let’s dive deep into why you need a property manager in 2023.
Table of Contents
Managing Tenants
A good property management firm takes care of all the aspects of the tenant-landlord relationship. Keep in mind that renting out property is business, and becoming closely involved with tenants can lead to problems. Keeping your relationship strictly professional is best to serve your interests.
Instead of making frequent trips to your properties to collect rent, your property manager can collect rent from tenants each month and deposit it into your bank account. The expert can also take care of your emergency and routine maintenance, schedule inspections, and manage conflicts arising from tenants.
Understanding of the Legislation and Laws
There are local, state, and federal laws that govern renting of properties. These laws are designed to protect both the interest of the landlord and the tenant.
Understanding and ensuring you comply with all the legislation and laws is critical to avoid legal hassles. This is where reliable property managers come in.
These professionals have the governing laws at their fingertips and know the best ways to handle tenants to avoid breaching them.
For instance, if you need to evict a tenant, a qualified property manager will examine the available grounds to handle the process most efficiently within applicable law boundaries.
Advice on the Market
Economic growth has seen a rapid change in the real estate market. The new properties being erected daily have led to a shift in the demand and supply curve. When managing your property independently, you could charge less than the current market rates or more, making it hard to attract tenants.
A good property manager conducts a rental survey in the neighborhood to help you come up with competitive pricing rates for your rental units to beat the competition.
Tenant Selection Process
Attracting tenants is not a hard nut to crack; the challenge is now getting good tenants. You wouldn’t want to fill your rental property with tenants who will give you problems with extremely late rent payments, destruction of property, and more.
Property managers have a streamlined and effective tenant screening process that includes checking the following:
- Tenant’s employment and income
- Credit checks
- Eviction history
- Landlord references
- Criminal convictions
Through extensive tenant assessment and interviewing, property managers obtain key details that help them choose tenants who can respect your property, pay rent on time, and stay longer. Conducting tenant screening yourself can be legally tedious, stressful, and time-consuming.
Better Financial Reporting
We were not all born with a head for numbers. That’s why we leave independent bookkeeping to experts. Your property manager can prepare rent reporting and give you detailed financial reports about your properties to keep you updated.
You can refine your budget through income, expenses, and variance analysis while focusing on the bottom line. A good property manager can also help you with taxes as well as prepare all the documents for launching tax claims.
Managing Vendor Relationships
As a new property owner, you will eventually need the services of suppliers, maintenance workers, contractors, and tradesmen. Building and maintaining these landlord-vendor relationships from scratch can be time-consuming and require expertise.
A savvy property manager has already established a good working relationship with the vendors and knows who to call at what time and for which need. This professional can not only get the work done at the best price but also oversees all the necessary maintenance projects.
Investment Flexibility
Most real estate investors prefer to invest in properties near where they live. While it may be natural, it is unnecessarily limiting.
Where you live is irrelevant if you leverage the services of a competent property manager. If you have seen potential investment opportunities in the neighboring states or even overseas, pursue them. Your Venice property management team will help with the management part and keep everything under control.
More Efficient Communication
While those late-night phone calls from tenants requesting urgent repairs are your responsibility as a property owner, they can be inconvenient and stressful.
By hiring a property manager, your tenants get a point of contact. The good thing is that most property management firms have 24/7 emergency lines and contractors on standby to respond to tenant queries. This puts your tenants in safe hands when it comes to unexpected leaks, outages, and even floods.
Proper Property Marketing
Property managers know how best to market your investment to the most suitable audience and attract a good number of tenants. Through proper marketing, chances of getting high-value tenants as quickly as possible become so high.
Most property managers have ventured into digital marketing, whereby they leverage a well-designed website, social media platforms, emails, paid advertising, and eCommerce sites to reach potential tenants and showcase the value of your property to them.
For instance, immediately there is a vacant house on your property, they create a post about it and share it on various platforms. As such, it is rare to stay with vacant houses for long.
Obtaining Data Insights
Experienced property management companies collect, analyze, and back up real estate data. They perform in-depth research into market projections, sales performance, and geographic information systems to give predictions about future property value and inform your investments.
This can help you determine the kind of improvements and adjustments that can add the most value to your property.
Some tech-focused property managers even have tools to collect usage data from heating systems, home appliances, and lighting to boost efficiency and help identify electrical repairs early.
Final Thoughts
Working with a property manager can help grow your rental business and yield more profits. It’s time you allow an expert to handle your property and dedicate your precious time and effort to more demanding matters.
