If you stop to think about it, there is a lot of responsibility and accountability that comes with owning investment properties. Many owners are able to keep up on their own while others use the services of a property management company. But what exactly is it that property managers do for owners?
Here is a short list of what you, as a property owner, can expect when hiring a property management company
Managing Rental Rates and Collection
Priority #1 is ensuring your investment is a continuous source of revenue. Owners don’t make money if renters don’t pay rent! It is also vitally important that the rent you charge for your property or properties are appropriate based on location, market, and competition. Property management companies are tuned into the local market, rental rates, and occupancy stats and will establish the best rental rates to optimize your investment.
Resident/Tenant Relations and Management
Keeping rental units occupied requires an orchestrated effort of marketing, screening, lease signing, customer service, and enforcement. Since these activities each compete for your available resources, it can be difficult to be the enforcer. When you engage a professional management company, however, your policies are enacted, serviced, and enforced by your agent, making life much easier for all involved.
Maintenance
Professional management companies are experts in all aspects of inspecting, maintaining and repairing properties. A management company either employs tradespeople directly or has access to a network of various maintenance and repair pros. Your property manager will stay on top of all maintenance and repair issues to keep your property in tip-top shape!
Rules and Regulations
Management professionals have been educated and trained in the intricacies of local, state, and federal regulations which currently relate to your property. They assure your property meets compliance criteria, file relevant records and licenses, and watch for future regulations which could affect the property.
Observation and Reporting
Property managers may or may not be physically onsite at your property. However, they are always diligent when it comes to keeping a close eye on what’s going on and informing you of any issues that may arise.
Employees
Property management companies take on the complicated and time-consuming burden of hiring and managing employees. Professional management companies will staff for every aspect of managing your property, which frees up your time for more important things.
Budget and Finance
Budgeting and financial management are among the most important of all the services a professional management company will handle. This includes, but isn't limited to, annual budgeting, long-term projections, taxes, and day-to-day financial obligations, such as paying utilities and contractors.
As a property owner, you’ve no doubt handled the management of some - or all - of the above tasks, but with very limited time. Professional property management companies are available to relieve you of that heavy responsibility, and most property owners will agree that hiring one is a worthwhile investment.
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