Thoughts from pros in an age where a disgruntled tenant and a premises liability lawyer could cost you more to prove your case than your property is worth!
Kimberly Smith
CEO/Founder,
AvenueWest Corporate Housing
800-928-1592
Yes, we can all manage our own rentals, but will this make us the most successful? If you take the time to find the right property manager you should be more successful or profitable over the long term. Yes, really! The first step is to find the right property manager.
Important questions to ask:
- Do they have experience with your specific kind of property? If most of their rentals are condominiums and you have a house, this may not be a good match.
- Do they have a proven track record in finding qualified tenants? If all they do is post an ad on Craigslist, you may want to find someone else.
- Do they have an established and documented maintenance program? You will make money two ways: first, rental income and second, long-term equity increase in the property. So you need a property manager who can properly maintain the property and doesn’t cost you an arm and a leg.
Then the final part of the equation is, do they have experience with bad tenants? Because we all know they are out there, and it isn’t just IF we will get them, but WHEN. And when they go bad, you need someone who can flip that property as quickly as possible and have the right resources to get the money you are owed. Anyone in property management will tell you it is a 24-hour, seven-day-a-week job, so ask yourself if this is a job you really want to do. Once you answer that question, make sure you take the time to find the best property manager for you and your property.
Reggie Brown
Chief Executive Officer,
All Property Management
877-780-4510
Most of us use a professional investment manager to safeguard our financial assets and advise on investment strategies. By comparison, professional property management typically costs less and delivers far more value to your bottom line if you are a serious property investor.
There are a number of moving parts to property investment. And while many can tackle some of the challenges, few are capable of doing them all well. A qualified professional property manager pays for itself many times over. Beyond applying the basic skill set unique to landlords, professionally managed rental units on average have higher operating income, lower tenant turnover and better future sales values.
But not every property manager is created equal. It’s important for investors to evaluate a few prospective property managers. Are they licensed and do they have additional certifications? Do they have the right liability insurance to protect you from tenant legal complaints? Have they managed your type of unit? Do they have a contractor network? These are the things you’ll need to know before you make your decision.
Keep your investments safe and leverage the advantages of great management services. That way, your investments will flourish, and you’ll sleep much better.
Chris Carlino
Owner,
Trenton Rental Management & Investor Services
609-392-0123
Property management companies that know what they are doing are an investor’s best friend.
Let’s start with the myth that property management companies cost you money and cut into your profit. This is not true by any means.
Take, for example, when you need a repair. Unless you do the repair work yourself, you cannot get it done cheaper than the management company, which typically will pass along its volume contractor discounts to you, the investor. This adds up to be a tremendous savings in time and money.
Another example is evictions, which are not easy tasks. Property management companies are very experienced at doing background checks and finding quality tenants, thus saving you money in lost rent and lawyer fees. Let’s say you need to do an eviction. A reputable property management company will have very good working relationships with lawyers, courts and marshals, which means we can get the job done much faster than you, thus cutting back on down time.
Have you ever gotten a violation from the municipality where your property is located, or from a utility company? If you have, then you know that these can be nightmares. The property management company has the experience and knowledge of all the ins and outs that apply to those situations. And they will also have a good working relationship with the agencies involved.
Finally, most investors are limited to their resources when finding tenants, but property management companies have dozens of resources to find people.
A good one will save you a quite a bit of money, put more cash flow in your pocket, and will cut down on vacancy rates.
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