When you have one or two properties their management could feel comfortable and will not take too much of your time. Therefore, you are able to collect rents, to fix some things but the interaction with the tenants and other financial issues should also be regulated. So, with each new property you are becoming a full time worker for your property’s management. Hence, when acquiring a new property, you should have in your mind that you need somebody or some company to manage it. Eventually, it will cost you some amount of money, but on the other hand, a good manager doesn’t cost you money, it makes you money.
And here comes a decision of hiring a property manager. So, when considering it, one should go through all the benefits and reasons of having a property manager.
Thus, the benefits of having a property manager include:
No one likes stress. You don’t want to have a stress each time you receive a phone call from your tenant. Why should you? You can avoid all that stress by delegating that work to someone else. You are the one who write the rules. For instance, you can tell your property manager not to disturb you if there is a repair or some other work which is under $100. You can just have the bill after the work is done.
Search of Tenants
The process of finding tenants could be very time-consuming and stressful. There are criterions that the property owners don’t know, and it will be hard for them to find good tenants. Property managers have their system of screening and analyzing the potential tenants (credit and criminal background check, interviews, applications, references, etc.). In addition, they find the ones which pay the rent on time, cause less problems and rent for a long time.
Management of Tenants
There is a saying. “Never manage your own rental properties”. There are nuances that you don’t know but property management team knows. This could also include the tenants. Having a property manager lets the owners not bother themselves from day-to-day management of their properties. Property managers are the ones who answer the phone calls of the tenants. Moreover, the tenants even shouldn’t know the phone number of the property owner. All the requests and demands should be addressed to property managers, they manage the routine of the property, handle the conflicts and ensure the tenants’ satisfaction.
In addition, they collect the rents. Collecting rents on time each month is a very important aspect, it is the way of having a stabile inflow of cash. Property managers have experience with dealing with tenants and collecting the rent for the owners.
When any problem occurs, the property manager is the first person that the tenants contact. They are responsible for any maintenance and repair works. The property management teams know the best contractors to make the repair. In addition, this will minimize the costs for the owner and keep him away from searching them by himself (ask referrals, search online, etc.). Also, the property manager will do check-ups time to time to find out the minor problems (repairs, malfunction, etc.) and to overcome them in an early stage.
Knowledge of Laws
A good property manager has substantial knowledge of the landlord-tenant laws and will assist you in having a property which corresponds to these regulations. In each unpredictable situation with the tenants (late rent payment, eviction, etc.), their awareness of the legal issues will help you to deal with the problem.
Tenant retention/short vacancy periods
To find a tenant is one thing but to keep him for a long time is something different. The turnover process involves not only loss of the rent, but also other serious issues. For instance cleaning of the property, changing of the locks and furniture (if available), painting of the walls, etc. Also, we should not forget about the expenses connected with the finding, showing and screening the new tenants. Therefore, this is a long and time-consuming process.
The great property management company has a good retention policy and a system of finding tenants with a long stay intention.
Concerning the vacancy periods, property managers know how to prepare the property for rent. They also know the rate by how much they can increase the rent. Property managers are familiar with the local market and its rules. They already have prepared ads and know the best places to advertise the property for the potential tenants.
From the above mentioned, it becomes obvious that property manager is a good investment for the property owner. Paying a property manager is a nominal expense, it’s a business expense. Property management companies are there to take away your headache, stress and also to increase your return on investment (ROI). They should guarantee your passive income. Property management company’s fees could be approximately 5-15% from the rent (in Montreal), but that amount worth the work they are doing. A good property manager even increases your income by 15-30%. The only problem is to make a good choice of the property management company. They should be trustworthy, reliable and loyal.