Why Successful Real Estate Investors Partner with Property Management Companies

After purchasing an investment property, you may ask yourself whether you want to do everything on your own as a landlord or whether you will outsource to a property management firm.

Both choices have their pros and cons. But if you outsource your property management, you gain back time and peace of mind. As a property manager can fully support you in terms of property maintenance, collecting the rent, and performing marketing. But this requires you to pay a regular fee.

In this article, we at Halcyon Real Estate Services will provide you with information on who a property manager is and the benefits of partnering with a property management company.

Definition of Property Management

Handling your rental and attending to the needs of your tenants is known as rental property management. So, property managers are sought after by rental property owners to oversee the day-to-day operations of their rental properties. When your unit is empty, a property manager is also required to find a high-quality renter to occupy it.

A property manager is responsible for many tasks, this can include scheduling a lease signing, conducting tenant screening, and coordinating property repairs. So, if you have more than a single rental unit, it is usually best to hire a property manager.

Duties of a Property Management Company

The common tasks performed by property management companies are:

• Collecting the rent from your tenants
• Acknowledging and acting upon tenant maintenance requests
• Dealing with delinquent tenants
• Advertising units that are up for vacancy when a tenancy is expiring
• Keeping business documents in order and recording any property issues

If you choose a reputable property manager, you can easily earn back the management fee you paid. This is because your rental income will become more stable and you are more likely to end up with top-notch tenants.

Cost of Investment Property Management

Property owners can be put off by a property management company because of their fees. But management fees can vary from as little as 8 % to 12% of the rent. But this can change depending on the services provided and the generally accepted figure is 10%.

It may feel a lot for some property owners, but you do end up with incredible benefits when a property management expert is handling your rental space. As a rental owner, you have more time for other important activities in your life and your workload is greatly reduced.

Benefits of a Property Manager

Being a landlord demands a lot of time. It also requires the expansion of a variety of skills like bookkeeping and marketing. Skills that an investor may not have the time or interest in learning. So, if you prefer to allocate your time to other activities, you can opt to engage the services of a property manager. Property managers extend value to your rental business in various forms:

• Expertise in marketing: With a strong set of marketing skills, property managers can often easily attract a great caliber tenant and ensure that your vacancy gets filled quickly. They know which marketing mistakes to avoid. 
• Knowledge in the local market: Since property managers are immersed in the industry, they’re far more able to set an accurate rental price for your property.
• Conducting property showings: When you’re a long-distance or new landlord, it can be time-consuming and costly to meet each potential tenant showing interest. Property managers can take on this task on your behalf. Leading to plenty of savings for you.
• Managing tenants: Despite having excellent renters, you still need to do the work to keep them for the long term. This requires property managers to perform tenant screening, resolve conflicts, and keep the communication lines with renters open. If eviction is necessary, then this is also part of their job.
• Dealing with maintenance and repairs: Since maintenance and repairs are vital to ensure your rental remains habitable, the bulk of a property management company’s duty rests on property upkeep and scheduling repairs with excellent contractors.

Advantages of Hiring a Property Management Firm

When you have a professional property manager overseeing your rental property, you can expect a smooth operation. You’ll have access to the best property management practices and a ton of useful resources.

The in-depth knowledge of property managers regarding real estate law means you’re unlikely to make costly mistakes. In addition, your rental rate is optimal, attracting many prospective renters. Giving you the opportunity to select the best.

With a dedicated property management company as your partner, you will be able to:

• Attract the best renters
• Benefit from quick occupancy after a lease expires
• Enjoy a systematic approach to rental management
• Protect yourself from legal disputes
• Free up time otherwise spent managing your property
• Count on them to write good property listings

Bottom Line

The final decision on whether or not to hire a property manager always depends on the rental owner. But if you find yourself experiencing any of the following, it’s advisable to contact a property manager:

• Too much time is spent in and around your properties
• If you live far from your property and are struggling to keep up with maintenance
• If you find yourself unable to keep up with the demands of marketing, tenant screening, or the real estate system in your state.

By partnering with a solid property management company, you can end up with a more stable rental income. You can also rely on their local expertise and professional skills to guide your rental business to success.

If you have any questions regarding this or any other aspect of property management, don’t hesitate to contact us at Halcyon Real Estate Services today! We are a full-service property management company, eager to support you and realize your investment goals!