Why do you need a property manager?
The question of whether to hire a property manager or not has likely crossed every real estate investors mind at least once. Here are a few reasons to consider hiring a professional property manager:
Better tenants and shorter vacancies
Property managers have seen hundreds, if not thousands, of rental applications and know how to accurately and efficiently screen tenants to ensure that only the best applicants are chosen for your property. Their market expertise will help quickly determine the best rent rate in order to maximize the revenue generated by your investment and their years of experience will aide in effective marketing to minimize the amount of time required to find a new tenant.
Increased rent collection
Professional property managers have proven processes in place to collect rent as soon as it is due and to act quickly when a rent payment is late. Their expertise in the field allows them to act confidently and consistently, leading to greater overall collection totals and decreased delinquency amounts.
Increased collections, by default, lead to fewer non-payment eviction cases. With a property manager, you are ensuring that only the best tenants are accepted for your apartments and once they move in they are under the close watch of the manager. A good property manager will have experience navigating the legal system which will decrease the time required to evict a tenant when necessary.
Decreased turnover rate
Turnovers are expensive - cleaning, paint, repairs, marketing and advertising, time spent showing the property, etc. Effective tenant screening makes sure that you only get the best tenant for your property (which reduces turnover repairs and expenses) and efficient management will ensure happy tenants that have no reason to leave.
Decreased maintenance costs
Hiring a property manager gets you access to their in-house repair team that can often take care of small maintenance items at a decreased cost compared to 3rd party vendors. You also get the benefit of their vendor network - having already vetted for pricing and quality you can be sure you are getting the best price and the best work. Most vendors give property managers preferential pricing (and treatment…) in exchange for the volume of work received, those discounts are then passed on to you.
Less stress/more time
You won't have to deal with late night phone calls, phone calls to and from vendors or piles of paperwork and you'll save time not having to chase down tenants for rent, or marketing and showing your apartments. You can spend more time working ON your business, not IN your business. More importantly, you can take back your valuable time and focus on your career, future investments, or simply doing what you enjoy!
Most landlords and investors will consider professional property management to be another expense line item. In reality, a good property manager will more than pay for themselves through decreased vacancy, turnover, and eviction frequency and increased collections, rent amounts and tenant retention. Overall, a reliable, competent, and trustworthy property manager will not only alleviate the day-to-day headaches associated with managing your own property, but will lead to an increased value of your investment and the cash flow it generates.