5 Reasons You Need a Property Manager

Investing in a rental property doesn’t just require capital – it also takes a lot of time to manage it once it’s yours. In fact, many new investors don’t realize just how many hours will be spent dealing with day-to-day maintenance of the property. Since time is such a precious commodity, many experienced investors turn to specialized groups to take care of their property management. If the wisdom of seasoned investors isn’t enough to convince you, here are 5 other reasons why you need a property management group handling your real estate investment.

1. Determining rent prices and collection of payment. A good property management company will have localized knowledge of the area your property is in, and will be able to use that to set the highest rate possible for your rental without scaring away tenants. Once tenants are in place, the management group will also handle rent collection. This is a huge benefit to you as the property owner, because these groups often employ special strategies to streamline the collection process and ensure that payments are made on time and in full – and consistent payments are what keep your cash flow, well, flowing.
2. Knowledge of laws and regulations regarding your property. One thing many new investors don’t think about is all the legal intricacies that come with owning a rental property. As the owner, you must be in compliance with a myriad of laws and regulations, and just one misstep can cause you a huge headache. An experienced management company will have knowledge of these laws and will know what it takes to ensure you’re not breaking them and possibly dealing with a lawsuit.
3. In-depth tenant screening. One of the biggest concerns a property owner faces is the quality of their tenants. Are they going to pay rent on time? Are they going to treat your property with respect? These are questions that a good management group can help you answer, thanks to the extensive screening processes they use. Background checks, employment history checks, and talking to previous landlords are just some of the precautions they take. If an applicant doesn’t meet the high standards set by the management company, then they’re able to decline the tenancy without putting you at risk of breaking any fair housing laws.
4. Large, reliable network of professionals. Inevitably, you’ll need the services of a good contractor to make a repair at your rental property. This is an already stressful, not to mention costly, situation, and it can become even more stressful when you’re working with an unfamiliar and unvetted contractor. This isn’t the case when you’ve got a management group on your side. These companies have networks of experienced, reliable professionals who are able to perform the work honestly and at fair prices, saving you lots of hassle and money.
5. 24/7 availability to your tenants. What’s worse than getting a call at 2 a.m. about an overflowing toilet at your rental property? Not at lot, actually. When you decide to handle your property solo, it will be you getting awakened in the middle of the night. Why not let a property management company field those calls and deal with the aftermath? They will, and their 24/7 availability means that someone will always be there for your tenants in case of emergency, whether it’s the middle of the night or a holiday weekend.

When you add up all the benefits of hiring a property management company to handle the maintenance of your rental home, it’s kind of a no-brainer to do it. Having an experienced team of professionals on your side will save you untold hours, hassle, and cash – leaving you with more time and funds to start scoping out your next real estate investment.