Savvy real estate investors know that to build a portfolio that works for them instead of creating work for them they need to have great partners. A property management company can be an essential partner for those who know that they want to be investors and not landlords. It allows them to take a hands-off approach to the daily tasks of owning rental property and all the stress that goes with it. Here are six reasons savvy investors hire a property management company and why you should too!
1. They understand what their time is worth
Owning and managing your own investment rental properties can quickly become a full time job. If like most of us, you already have a full time job it is safe to say you probably don’t want another one. Landlords often underestimate the amount of time managing their properties will take or the amount of work to be done. Finding and screening tenants, maintenance and collecting rent are just a few of the long list of things that go along with owning a rental property. Contracts, housing regulations and evictions laws can make your head spin trying to keep everything legal and in proper order. Property managers handle all this for you and allow you to simply enjoy the cash flow. That is the reason you got into this in the first place, right?
2. They’re not on call 24/7
Interrupting a dream vacation or a late night phone call to resolve an emergency maintenance situation can be a common part of the landlord experience. A property management company will take care all of this stress for you. You can make the decision on how involved you want to be with maintenance issues by setting parameters ahead of time like how much can be spent without your approval. So get a good night’s sleep and leave the 2 am phone call to your property manager.
3. They can invest in the most profitable markets
An obvious limitation of managing your own properties is that you must be close enough to do the work. Working with a property manager allows you to pick and choose the locations that will give you the biggest return on your investment regardless of where you live.
4. They like to save money
Property Management companies often develop relationships with local contractors and you get the benefit of those relationships. Typically, you will get quality work, a better price and a quicker turnaround. A property manager can advise you on managing the cost of products used on your property, especially when to splurge and when to save. In addition, the property manager will oversee the work and ensure it is done properly and timely.
5. They love having their t’s crossed and i’s dotted for them
Bookkeeping can be a time consuming and complicated process for owners. A good property management company will provide you with detailed reports with all the necessary paperwork ready for you to hand off to your tax professional.
6. They don’t have to be an expert
A good property manager will work with you as much as they work for you. A property manager has a lot of expertise that provides great value to their clients. Yes, they manage all the day to day tasks from placing tenants, collecting rent and maintenance. However, they can also provide you with guidance on how to find the right property to purchase, help you through the sea of paperwork during the purchase, help you set the correct rental rates and much more. There are also a lot of housing rules and regulations specific to each city that your property manager can help you navigate and stay out of court. Unless, of course, you must deal with an eviction and they can handle that for you too!