An experienced property manager handles all aspects of managing a rental property, including communicating with tenants, ensuring rent is paid and dealing with maintenance issues.
What is a property manager?
Property managers are people or companies who handle the daily operations of your real estate investment. The tasks they perform include setting rent prices, collecting rent, screening tenants, and handling maintenance issues. There are some states that require property managers to be licensed.
What does a property manager do?
There are several reasons why you should hire a property manager. Maybe you don’t want to get involved in the day-to-day operations of the property or are too busy. The stress of owning a property can be relieved by hiring a property manager or property management company. A property manager’s responsibilities include the following:
1. Stay updated on landlord-tenant laws
2. Set rental rates
3. Find and screen tenants
4. Collect rent
5. Enforce signed leases
6. Handle maintenance requests
7. Keep an eye on the property
8. Proceed with evictions
9. Deposit the rent and communicate with owners
The pros and cons of hiring a property manager
- There are no headaches with it. Property management can be challenging on a day-to-day basis. All aspects of property management are handled by property managers, including finding and screening tenants, dealing with problems and complaints, and refunding security deposits.
The process saves you time.It takes time to learn the ins and outs of rental property laws and regulations. The same goes for figuring out how to screen tenants. You can leave all of that to your property manager.
- It simplifies the process of collecting rent.Rent prices are set and rent is accepted by someone each month, so your investment will yield a positive return.
- You save money this way. Although property management costs money, it’s worth it. Vacancies will be kept to a minimum, and repairs will be completed efficiently, which will save money.
- Your investment is protected. Property managers ensure that everything runs smoothly whether you own one or more properties. A property manager will keep an eye on the rentals and ensure tenants are following their leases.
- Owners who live out of town benefit from it. Having a property manager can give you peace of mind if you don’t live in the city where your rentals are. Property management companies are always on hand and can respond quickly to problems.
While hiring a property manager offers many advantages, there are a few downsides to consider, including:
- You lose some control over it.Using a property manager relieves you of many responsibilities, but you will lose some control. You may not select the contractor handling repairs, and many smaller repairs may occur without your knowledge.
- It’s an extra cost. You should factor professional property managers into your monthly expenses and decide how they affect your bottom line. Our pricing can be found here.
- It’s an additional step. The process of finding a professional property manager can take time. Before selecting someone to manage your rentals, you should interview a few individuals or companies.
- You are responsible for managing it. While property owners hire property managers to manage their rentals, you will also be responsible for managing them to some extent. Each month, owners should ensure that they are receiving their rent payments according to the property management agreement.
How much does it cost to hire a property management company?
Property managers take on so many of the responsibilities that would traditionally fall on the owner’s shoulders. Along with the management fee, many property managers charge:
- Maintenance fees. A monthly maintenance fee is charged by some property management companies to cover unforeseen expenses. In some cases, you may be charged for repairs, maintenance, or upkeep that come up during the month. Rent deposits are usually used to cover these costs.
- Leasing fees. When a new tenant signs or renews their lease, property managers may charge a fee. It may cover the cost of marketing the rental, reviewing applications, or other tasks.
Lean on property managers
It takes a lot of time and effort to manage property, from advertising to screening tenants to making sure rent is paid to handling repairs and complaints. Owners of properties often find this too much to handle. Therefore, hiring a property manager can save you time and headaches.
It may seem like an extra expense (and it is). It’s well worth it, especially if you own multiple properties. By hiring a property manager, you won’t have to worry about chasing down rent payments or coordinating repairs. You can just sit back and enjoy the return on your property investment.