If you have started to venture into the home rental business, you've probably already asked yourself if you should hire a property manager. You probably also know the financial rewards that come with managing a rental.
Yet, rentals take a lot of time and effort. You can do it yourself, but this often isn't practical--especially if you are interested in expanding.
This is where the right property manager can come in and help you with the critical tasks listed below.
The Role of a Property Manager
Often, a property manager will interact with tenants on your behalf. They may also market your rentals, meet with applicants, manage showings, collect rent and oversee repairs. In addition, they are the contact person for tenant complaints.
Managing Your Rates
It is one thing to perform your own research by looking through the classifieds or other sites to see what landlords are charging for similar properties. After looking at four or five sites, you might decide you have a good idea of your ideal rent price.
Yet, a property manager can conduct a more thorough market study to configure the most profitable rental price for your property. The objective is to maximize your monthly income and minimize your vacancies.
Collect and Deposit Rent Payments
Collecting payments from tenants can be awkward and difficult--especially if you don't have an efficient payment system set up. On the other hand, a property manager can effectively collect rent to ensure on-time payments.
This can be a huge help with you only have a few properties and depend on the cash flow to remain in business.
Market Your Property
If you don't understand marketing, you can easily waste thousands of dollars on inefficient campaigns that don't reach your target market. Yet, a property manager will know exactly where and how to market your property to get the right types of applicants interested.
This can be a boom to your business when it comes to filling your properties quickly. Plus, it helps to ward off the types of tenants you don't want.
If someone wants to live in one of your properties, they will naturally put their best foot forward. Yet, you can't always trust what people put on paper.
Property managers will help to find the right tenants by managing criminal background and security checks while verifying income. Anyone can be nice, but not everyone will be a good tenant.
You want people who will treat your property like their own and pay on time.
Managing Compliance with Housing Regulations
There are many state and federal regulations regarding renting and maintaining rental property. The last thing you need are lawsuits because you just don't know what you don't know.
Your property manager can help keep your rentals in compliance with all local, state and federal regulations.
Renting properties can be a profitable business. As you expand, you will need more help.
A property manager can help give you some time back so that you can focus on what you enjoy the most—collecting rent.