Why would you consider a property manager? You may have decided to invest in a rental property or rent your home for other financial reasons, but you don't know what to do next. You're not alone. The realities of maintaining and running a rental property can quickly become overwhelming, even to the savviest investor. Many times, people chose to hire a property manager to help them in the day to day tasks, which could be just the answer you're looking for. To help make up your mind if hiring a property manager is right for you, here are 10 reasons that could help influence your decision.
If you've ever worked in the billing department of an organization, you know that securing payments from clients and patients can be difficult, not to mention awkward. A property manager has his/her own systems in place to effectively collect rent and maintain on-time payments. Especially if you are a small investor, with a limited number of properties, not being able to maintain consistent payments is going to significantly affect your cash flow.
A property manager is going to make sure your rental rates are competitive, which is the key to securing (and keeping) tenants in your property. Their job is to know the rental market which is most likely not your forte.
There is a multitude of applicable laws and regulations that you are going to need to abide by when renting and maintaining your rental property. These include local, state and federal regulations (such as the ADA). A property manager can help you avoid lawsuits by keeping up to date and in compliance with these regulations.
A good property manager is going to have experience in offline and online marketing, as well as local direct mail opportunities, which will increase the exposure of your properties. Carrying a vacant property can be extremely expensive, and is an expense you want to avoid whenever possible.
Being extra vigilant in the care of your rental property is critical to the maintenance of your investment. Through routine inspections, a property manager can find and repair problems before they grow into expensive endeavors. It is standard for property managers to perform inspections before a tenant moves in, during their lease, and after the tenant moves out.
Securing tenants can be a time consuming process. Depending on the extensiveness of requirements for your rental properties, a property manager can take care of securing all criminal background and security checks, credit reports, employment verification, and previous landlord references. In addition, all tenant disputes, evictions, conflict resolution and emergency maintenance will all go through a property manager who will involve you at his/her discretion.
A property manager has existing relationships with maintenance workers (or even their own in-house service department) tradesmen, vendors, supplies and contractors that you may not have. This can save your significant time and money when it comes to maintenance on your rental property, not to mention ensuring quality work.
By having a property manager that takes care of the routine daily tasks, you are free to focus on other investments and/or your own career.
If your investment property is in another city or state, it's simply not possible for you to oversee management and maintenance of the property and its tenants. A property manager can be where you can't and take care of all the details you don't have access to.
Most property managers charge a percentage of the monthly rental rate ( or flat rates). The cost is actually quite nominal when compared to all the services a property manager can provide, which frees up your personal and professional time.
80% of renters show a preference for renting from a property management company
60% of rental housing in the United States is rented out by private home owners
90% of all file evictions are by a private owner/manager of the property
30% approximate percentage of all housing in the United States are rentals
This report was done by an independent service, All Property Management, LLC which is a provider of online property management companies. Copyright 2004-2009, All rights Reserved.
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