Being a Do-It-Yourself Landlord can be draining: on your finances and on your time. No matter how long you’ve been a landlord a property management team can be a good investment for you and your goals. DIY Property management requires you to be a Jill or Jack of all trades including high-level skills in marketing, maintenance, and understanding property law. Because you’re not an expert in all of these areas you could end up putting a lot more time and money into your property than you anticipated. You’re also more liable to being cheated by a contractor or maintenance worker.
Partnering with a property manager isn’t just about handing over your responsibilities. When you work with a property manager, you benefit from their years of experience and access to established resources. You’re not just relying on one person, but a whole fleet of professionals to manage each aspect of your investment, from tenant screening to maintenance with consistent policies, procedures, and documentation.
You’ve decided to hire a property management team - excellent! But how do you know which team will be the best fit? You deserve professional and reliable service that goes above and beyond for you and your tenants. A company’s website, offices, and overall feel up front should be considered when choosing who to partner with, but even more important is that they are well established and have great references from multiple landlords.
Great marketing doesn’t just gain better tenants; it has a ripple effect on customer satisfaction, which leads to a better overall reputation and higher quality tenants. With a property manager in your corner, you can trust that your online presence and listings are top-notch and pulling in the best tenants.
Fact: Property Management teams are paid a percentage of the rent you receive.
Why is this great for you as a landlord? Because it means that a property manager’s number one goal is keeping your rental occupied with quality tenants. Great marketing often bleeds into customer satisfaction. No one likes moving so you can be confident that, barring an outside need, a happy tenant is a tenant retained.
If you’re unaware of what damage a “Professional Tenant” can do you must be very lucky or very new to property management. A Professional Tenant can manipulate you and the legal system to live rent-free for months at a time. In some cases, it’s more cost effective to pay this person to move out of your home than to evict them. Knowing how to eliminate them at time of screening is the best way to avoid being taken advantage of, but they can be difficult to spot or say no to if you don’t have the experience.
Working with tenants is one of the most time-consuming parts of being a landlord. The time spent on tenant issues is compounded when said tenant is overly needy, or worse, a professional tenant that has slipped through. Late night calls, refusal to pay rent and constant complaints can put a strain on your mental health and your finances as well. A property management team is more than equipped to handle these tenants. Not only do they have clear policies and procedures to rely on but they put a professional third party between you and the renter.
Proper maintenance is essential to keeping your tenants satisfied and your investment secured. As your own landlord, you may resort to DIY fixes that end up costing you more in the long run. You could also end up paying much more for maintenance if you don’t understand what repairs should cost. A property manager has the advantage of gaining quality maintenance teams in two ways: 1) Experience. Depending on how long you’ve been managing properties a property manager is going to have their expertise in the field as well as the rest of their staff to fall back on. 2) An economy of cost. A property management team works with multiple sites which means when they hire a maintenance worker they can provide an array of jobs with a single contract.
Knowing what you should be deducting from your taxes is hard enough for your personal affairs, let alone your small business. And when you own an investment property, that’s how you have to think of it. Property management is a tax-deductible expense, which makes it even more worth it.
Property managers know how to engage with your rental property as a business. They understand that to be successful and have a flow of continuous, quality renters. When you work with a property management company you can compete with larger firms by:
Tenants respond well to professionalism and as you satisfy each new renter with your property manager’s service your word of mouth reputation grows. Your reputation is crucial in the housing world and the world of small business. Let a property manager guide you toward success.