Property managers provide services that help convert passive ownership of property into profitable management.
If you’re managing one property or if you live next to your rental, you might not need a property manager. However, if you’re planning to own or currently own several properties, it can make a real difference to hire a property manager.
As an investor, hiring a property manager is the next step in giving direction and purpose to your investments.
Property managers plan your finances around local laws and requirements.
Property management services include helping you create a long-term financial plan. From the moment you consider real estate as an investment, property managers can help you plan around the expenses that you’re bound to incur throughout your ownership. This includes
- mortgage payments, if any
- insurance
- inspections, and the repairs and maintenance that you have to allot money for
It’s possible to personally handle the miniscule tasks that are associated with property management. You can look up housing laws and regulations. It’s possible to build your own network of contractors. You can scour the neighborhood and assess the benefits of proximal services.
But all of that takes time. And the time you’re not making money off the property you own, is time wasted and money not made.
You’re probably already aware of what real estate agents can do for you. You’ve had to work with a broker or agent prior to ownership. You’re more than aware that they can provide you with the right information. And, more importantly, that they can advise you on how to act upon that information.
Essentially, what you get when you hire property managers are the years of expertise with the local laws, regulations and the market. This is especially handy when you have to plan for expenses, as well as for screening and engaging tenants.
Property managers can help you lower risks.
An important service provided by property management firms is risk management.
Opening up your property for business comes with the uncertainty and risks involved in dealing with people. People are far more unpredictable than estimating whether or not the proximity to a school or a shopping area will increase the value of your property. But even so, it is the people who will bring you the potential and the profit.
Property managers help you balance the risks with the gains.
For example, one important relationship you may have to manage is one between landlord and tenant.
It’s tempting to believe that everyone would show your property the same care that you do. Not all tenants present problems, but that is a risk you take on. And it is a risk that you can plan for by reserving cash to cover any untoward complications, and by investing in the relationship you have with your tenants.
Property managers can be the point of contact for all the engagements required in the lifecycle of a tenancy, performing tasks such as
- screening potential tenants or buyers
- negotiating contracts
- answering complaints
- scheduling inspections
- finding contractors for repairs and maintenance
- chasing up payments and enforcing fees
They have teams to conduct all of this, or they partner with support specialist companies like Staff Street to provide backend services specifically focused on taking care of clients.
The relationship between landlord and tenant is a transactional relationship, but a relationship nonetheless. And like all relationships, it requires trust and communication. An honest tenant may be more likely to alert you to damages to your property that may have long term consequences, unintentional or not, than the one who’s only calculating the costs you’re going to place on their bill.
Extending care beyond your property to your tenants can help you not just co-opt your tenant’s interest in the maintenance of your property, but also reduce turnovers and protect your investments.
Property managers are especially important in marketing.
Property management firms provide marketing services like
- creating and designing ad material
- staging and showcasing properties
- listing properties on various platforms
One of the biggest advantages of hiring property managers is that they have a wide network of buyers and sellers as their audience. They know where to go. Personally matching buyers and sellers, tenants and landlords may take more negotiations than the seamless partnerships offered by digital algorithms.
But nothing worthwhile is ever easy, and practical expertise pays off in the long-run. It can certainly go a long way when you want a property off the books quickly, and find a home that fits your life plan and your financial outlook to the letter.
So, in conclusion, is it important for you to hire a property manager?
It depends. If you believe that property management is a lot of work, that you would benefit from having someone’s professional eye on the care and maintenance of your property, then the answer seems very clear. It comes down to how much time and effort you can commit to transforming ownership into management and your investment into profit.