Managing an investment property can be challenging for many real estate investors, whether you are new to the real estate market or an erudite. Often times, real estate investors fail to consider all things associated with managing an investment property. Luckily, today many professional property management companies have emerged to cater to your needs. Moreover, with the technological advancements, you can even hire a professional property management online and work with them remotely. Becoming a real estate investor and being a landlord nowadays has become much easier with the various platforms made available.
Below, we will talk about what professional property management companies do and what benefits do they bring about. We will further suggest when you should be hiring a professional management company for your investment property. Finally, we go on to provide you with the top professional management companies out there to service your investment property. (Are you looking for an investment property? Click here to explore investment properties in your desired location).
Related: The Pros and Cons of Professional Property Management
What Does a Property Management Company or Professional Do?
An investment property manager or management company wants you to have peace of mind when buying an investment property. With an investment property manager, your investment will be well managed and every item will be well accounted for. You will no longer have to worry about marketing your investment property. Property management companies will handle prospects or tenants. Moreover, they will collect rent for you, handle maintenance and repairs when they arise, and respond to tenant concerns and/or complaints and even pursue evictions. These companies can be a huge asset to your business and will ensure that your business vision is put into action.
In fact, hiring a property management company, whether you are a part-time real estate investor or a full-time one, makes an optimal rental strategy. This is because a professional property management will protect your investment property or rental property and maximize its returns.
Related: Real Estate Investing 101: Rental Property Management
What Are the Benefits of Hiring Professional Property Management?
- Find high-quality tenants: finding responsible tenants to attend to all needs of a home requires time and seamless efforts. A good property manager will ensure that you find the most suitable tenant based on screening criteria they determine. Their analysis includes running an in-depth research of the tenant’s background, employment, rental records, and previous rental experiences. Given their long-lived experience assessing tenants, property managers will help you determine the most suitable tenant for your investment property.
- Efficient and effective property advertising: professional property management companies enjoy the ability to reach out to a large number of potential tenants. The property manager will advertise your investment property on different platforms, and supplement the ad with a virtual tour of the property and good high-quality pictures.
- Timely mannered rent collection process: following up on tenants and collecting rent can be taxing for real estate investors. Professional property management companies will ensure that tenants pay rent on time. Property managers will ensure that tenants comply with the lease terms. If for some reason a tenant is late to a payment, a property manager will resort to legal ways to resolve such matter.
- Continuous maintenance and repairs: professional property management companies are well connected with licensed and qualified contractors to fix any problems and ensure regular maintenance of a rental property.
- Tenant retention: since a professional property management company will make sure that all services are provided to tenants and inquiries are well attended to, tenants will be less inclined to abandon the property. Therefore, your rental property will have shorter vacancy cycles.
- No financial insolvency; better financials: a professional property manager will moreover assist you with all associated taxes. They will arrange for all documentation and ensure full compliance with landlord-tenant laws.
When Should You Hire Property Management?
Remember that hiring a professional property management company is not for everyone. For some real estate investors, hiring a property manager is costly and can drain one’s budget. For part-time real estate investors, on the other hand, a professional property management is necessary. Below are instances when you should consider hiring a property manager for your investment property:
- Again, you are a part-time real estate investor;
- You could be a real estate investor who lives far away from your investment property;
- Or have multiple rental properties;
- You are the least concerned about the day-to-day management of a property and prefer a third-party organization to handle it;
- Your time is limited; and
- You can afford to hire a property manager.
Related: Professional Property Management: Yes or No? Why or Why Not?
What Strategies Will Aid in Your Selection of a Good Property Manager for Your Investment Property?
- Obtain referrals from different sources: Remember word of mouth is your best strategy. Go out and talk to real estate agents and real estate investors in your area and inquire about a property manager. When referred to a property manager, ask them what they like the most about the company and what problems have they had with them.
- Go online: There’s no harm in doing your own research online. Below are institutions that can help you find a property manager online:
- Institute of Real Estate Management (IREM): irem.org
- The National Association of Residential Property Managers (NARPM): narpam.org
- AllPropertyManagement: allpropertymanagement.com
- T-Rex Global: simplifyem.com/property-management
- Check license and certifications of candidates: most states require that a property manager or management company have a real estate broker’s license or a property management license. Check with your state’s Real Estate Commission to see if a management company’s brokerage license is valid.
- Thoroughly study the Management Agreement: understand what the responsibilities of the property manager are, in addition to those of the owner of the investment property. Make sure to document everything you agree to and translate it into a written agreement. Pay close attention to the sections on services they provide, extra fees they charge, responsibilities of the owner, compliance with fair housing laws, and reasons for cancellation.
Wrapping Up
Hiring a professional property management company will certainly add value to your property. Hiring a property manager becomes necessary if you are far away from your investment property or have too many rental properties to manage. Before you hire a property manager, however, it is important to run a due diligence. Moreover, ensure that the fees charged by the property manager are reasonable and won’t exhaust your budget. If you want to know more about property management companies, visit Mashvisor’s blog. Mashvisor is specialized in finding solutions for real estate investors and deriving money gains for its subscribers.