A lot of landlords nowadays hire the help of property managers to handle the affairs of their rental properties. The property manager or management company will then be the one in-charge with the tenant and occupancy, marketing and financial, administration and risk management, and facility management.
The manager of the property hired will then be the owner’s partner in maximizing the profitability of the business by efficiently handling all aspects of the rental units’ affairs. The management company will act in the best interest of the owner to maintain the rental units, deal with occupancy issues, collect rents, and manage other financial concerns.
Tenant and Occupancy Issues
Your property manager will perform critical tasks that affect the occupancy of your rental units. These functions include improving and preparing the property for rent, determining the best rate for each unit, and effectively market your property. Determining the optimal price for each unit for rent is important in managing the property. Too high of a rental rate will make your unit vacant for too long while a too low rental price will result in income lost every month.
Your tenants may sometimes demand too many things with regards to the unit leased. Your property manager will need to respond and address each tenant concerns. Timely rent collection, monitoring lessee’s activities per contract requirements, and assessing the satisfaction of the residents with regards to amenities in the property are some of the responsibilities involved. Eviction for non-payment and other violations is also part of the property manager’s function.
Marketing and Financial
Dealing with rental property management entails understanding budgeting and operating expenses of each rental units. Knowledge about these will then be used to determine the appropriate rental rate. Your property manager may also suggest marketing programs, advertising strategies, and special promotions to maximize rental rates and occupancy. You may also require your manager for a regular financial reporting of the property. Your property manager needs understanding profit and loss, financial statements, budgeting, and income taxes to manage the job.
Risk Management and Administration
Federal, state, and local governments have some authority over real estate management activities. Your property manager must meet individual reports and other requirements set by the government as well as accurate records for taxes and accounting.
Physical control of the outdoor areas and building structures is also property management. Landscaping, plumbing, electrical, walls, roofs, appliances, and much more are examples of the physical attributes of the property that needs proper handling. Your property manager must maintain good relationships with repair companies and contractors in cases where maintenance and repairs are required. Preventive maintenance systems will be put in place to catch and deal repair issues early before they escalate into a more costly concern.
There will be less stress, more freedom, and additional time for you to handle other affairs, under than your real estate properties, when you contact and hire a property manager or management company. You avoid having to deal with late night emergency calls (from your tenants), chasing rental payments, eviction, rental scams, and tenants who have the tendency to wreck your property. Time is money and additional time for you can be spent on other business dealings that need your attention.