Investment Property: 6 Biggest Money-Specific Reasons to Go with a Property Manager
Is your investment property adding up to what you put into it?
An apartment over the garage is one thing, but when it comes to owning and maintaining anything more than one simple apartment, most landlords quickly find that they’re in well over their heads. Short of being a full time property manager yourself, there’s good reason to farm out most – or all – the responsibility of owning and renting out an apartment or house. These are just some of the most important financial reasons.
- Invest in Distant or Multiple Properties: This is but a dream for landlords who insist on being able to visit regularly. A property manager is going to allow you to own and profit from far more properties and far more distant properties. There is simply no way for a kitchen table operation to manage more than a very few properties if they all need to be visited regularly.
- Maximize Your Income: No one’s better qualified to know the rents that the local community will bear. Good property management companies have insight on what’s happening across the region. There’s no one better to rely on than a property manager to get it right and to keep the rent coming in. Even if a property manager charged you 10% and raised the rent 10% you’d get a great deal for NO added expense.
- Collect/deposit rent payments: That is the whole point. Rental property managers provide you with a far better overhead infrastructure so that you’re getting higher rents collected more regularly. These are collected from professionally screened tenants who are nearly always more reliable than those you’d be able to find yourself.
- Minimize Vacancies: Some of the best investment property owners come from backgrounds in marketing and advertising. But if you’re not maintaining accounts with the local media outlets and aware of the specifics of the rental market, then a property manager is the way to go. Some cities will not use Craigslist, and some higher income areas will insist on very specific rental procedures. Only experts in the local rental market are going to know the shortest way to the best tenants.
- Maintain Multiple Properties: All of us have met the local landlord with a trunk full of joint compound and electrical wiring. He’s trying to do too much, and no one is really happy with the results. Not the tenants. Not his family. Not his financial manager. A property manager can professionally manage all the repairs, the vendor relationships and the inspection of the property better than you can.
- Compliance: Housing regulations and property laws vary between municipalities. Falling out of compliance or getting sued gets expensive and staying on top of all the regulations is beyond the means of most kitchen table operations. But your property manager has the resources to manage all kinds of properties in all of these different markets. In fact, they’ve been doing it for years now. So your property manager is also an expert in the regulations governing the area where you’ve invested.
We often speak with landlords who don’t want to invest in another property because that might require them to hire a property manager.
Yes. You heard that right. If you prefer being a landlord to being an investor, well, we probably can’t help you. But if you’re interested in taking your investment to the next level – and maximizing the return and the quality of life that investment promised you in the first place, then we’ll be very pleased to look at your current portfolio of properties and how we can make it work better for you.