The Importance of a Great Property Manager
Updated: Jun 20, 2019
A landlord’s relationship with their property manager is one of the most critical factors to their rental portfolio success. When you contemplate the amount of time, money, hard work, and due diligence that goes into your single-family rental portfolio, inferior property management just isn’t an option.
It is challenging for homeowners to carry out the day to day management of their properties themselves, even if they only have one. Most property owners utilize a dedicated property management company who can efficiently manage their portfolio, allowing them time to focus on other things.
The use of a property management company is particularly beneficial for landlords who are investing in areas that they are unfamiliar with, as a good property management company understands the local rental market and it's demand.
Property managers don't just vet suitable tenants; they also streamline the running of your property portfolio by paying bills associated with your property and conducting inspections throughout the year to ensure the upkeep of your most significant asset.
Here are just a few of the reasons why you should take your time to find an experienced and knowledgeable property manager.
Happy Tenants Equal Tenant Retention
If your rental property is sitting empty and without tenants, you're not making money. Keeping multiple tenants happy is not an easy job, and requires a diligent and organized property manager. Property managers are technically in the customer service industry, and as such, their job is to interact with many different people daily.
Being able to respond to tenants queries and concerns promptly is an integral part of effective property management. The property manager you choose to represent you and your business will be the go-between between you and your tenants, and needs to be able to represent your best interests while also being respectful and helpful to your tenants. This will help to ensure that your rental property retains its tenants - and it’s cash-flow.
An Efficient Property Manager Can Streamline Rent Collection
Handling rent collection and late payments can be one of the most stressful parts of being a landlord. The rent you receive from your tenants should create a consistent cash-flow, and hiring a property manager can make sure that you receive your rent on time each month.
An experienced property manager understands landlord-tenant laws and can use tenant screening to ensure that only the most qualified tenants move into your property.
If a tenant fails to pay their rent, most property owners find it easier to let the property management company deal with the issue. Due to strict laws regarding evicting tenants, it is crucial that you use a knowledgeable property management firm that understands the legalities of the eviction process. This will ensure that as a landlord, you obtain the best possible financial outcome.
A Knowledgeable Property Manager Can Be Worth Their Weight In Gold
A great property manager understands that maintaining the value of your investment is one of the most crucial parts of their job description. By employing a preventative maintenance strategy, a good property manager can deal with maintenance and repair issues early - before they grow into more costly problems. Property managers can also advise you on upgrades that you can make to your property in order to maximize your rental income and property value.
Because a good property manager will have experience dealing with multiple income producing properties, they will also be able to help you identify and understand which tax deductions you can claim as part of your rental business. For example, did you know that property management fees themselves are tax deductible?
From discussing market analysis with you to ensuring that your portfolio is as profitable as possible, can you really afford not to have a property management company handling your rentals?
If you have any questions regarding purchasing a single-family rental home, we would be happy to assist you! You can reach us here, and also check out our podcast for general financial advice and useful tidbits.
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