Many real estate investors are reluctant to hire a professional property manager simply because they’ve never tried working with one and do not know the value that they can bring to the table. Some landlords in the area believe that they can make more money if they manage their rentals by themselves. Well, if you belong to this group and you are weighing the options, whether to hire a property manager to handle your rental property or not, keep reading.
What You Gain From Working With a Rental Manager
1. You no longer have to solve tenancy issues yourself
When you hire a property manager to take care of your investment, they also handle tenancy related issues on your behalf. You no longer have to solve tenant disputes by yourself or respond to late night calls from them whenever there is an issue to be solved. This results in you having more free time to allocate to whatever you please. Property owners usually use it to either work full time, enjoy leisure time or spend more time looking for new investment opportunities.
2. Repairs and renovations are done on a timely basis
Many landlords are not able to do timely repairs and renovations on their rental properties because they lack the time and resources to do so. Consequently, many investors end up losing potential tenants because they take a long time to implement repairs and renovations. However, when you hire a local property manager to take care of your rental properties, he/she is also responsible for repairs and renovations when need be. This means that your properties are always in good condition. The fact that your properties are renovated also allows you to keep your rental price on the high end.
3. Your rental properties will continue gaining value
Every landlord wants their properties to keep on appreciating so that they can get higher profits if they decide to sell them in the future. However, many investors live away from their rental houses, making it hard for them to inspect them regularly. However, you do not have to worry about the state of your investment when you hire a property manager to take care of it because it will be inspected on a regular basis to make sure it remains in good condition. That way, your rental house will always be attractive to potential tenants and keep on gaining value.
4. You lose the stress of collecting rent
Many investors are discouraged to invest in rental properties not because they do not have adequate capital, but because it can be very stressing dealing with tenants and collecting rent. Very few landlords can overcome the pressure of having to run after tenants every end of month to ask for rent. However, when you hire a professional real estate manager to take care of your investment, he/she also collects rent and rental deposits on your behalf. All that you need to do, as an investor is to wait for the end month to see that rent be deposited in your account. This responsibility is transferred over to your property manager, allowing you to sit back and relax.
5. No need to worry about the stress of screening tenants
The type of tenants that you have in your rentals determines the profitability of your investment. Many real estate investors are not good property managers and they normally allow problematic tenants in their rentals. This is simply due to their lack of experience screening potential tenants correctly. This results to regular tenant disputes and evictions. However, when you hire a property manager to take care of your rental properties he/she also resumes the responsibility of screening potential tenants. Most competent property managers have a lot of experience and also have set processes in place to make suitable selections for you.
6. No need to worry about structuring the rental agreement
A rental agreement is a very important document in as far tenant management is concerned because it ensures that the rights and interests of all parties are protected. The rental agreement also serves as a reference whenever there is an issue that needs to be clarified between the landlord and the tenant. The saddest part is that very few landlords are able to structure a good tenant agreement for their properties. However, the rental agreement should not worry you after you have hired a real estate manager to take care of your rental properties because he/she will structure it on your behalf.
7. Rentals are being maximized
The most discouraging thing for any real estate investor is when a property stays for several months without tenants. This could be because the properties are not appealing to potential tenants, demand for rentals is low or you do not advertise your rentals properly. However, when you hire a professional manager to take care of your rental properties, he or she also assumes the responsibility of advertising them to potential tenants. Every tool that can be used to maximize your rental properties should be implemented.
8. It becomes easy to get new deals and grow your portfolio
The real estate market is reviving and the number of investors acquiring properties in the area is increasing year after year. However, this should not be mistaken to mean that all areas in the city are good for investing in rental properties. There are some areas where the demand for rental properties are very high and other parts with very few or no renters. The good thing when you hire a property manager to take care of your rentals in the area is that they can also help you find good deals in areas where demand for rental properties are high. Local real estate managers are conversant with the market trends and serve as a rich source of investment information to their clients.