If you’re a homeowner (or plan to become one soon), then you know that there’s a lot more to keeping your property in good condition than just mowing the lawn and taking out the trash. Taking care of the day-to-day jobs, responsibilities, and maintenance of your property can be a big job. This is especially true if you own an investment property or two, along with your own home to manage. That can be a lot of work! So, what can you do to lighten the workload a little? Hire an experienced professional! Especially if you have multiple properties to oversee or simply don’t have time to do it all yourself. Residential property management is designed to help take some of this burden off your shoulders by providing expert assistance with your property and all that it entails.
If you’re considering hiring a residential property manager to help take care of your real estate investment properties, it’s a good idea to do your homework first. Finding and hiring the right residential property management company to help you take care of all the details- from repairs and maintenance to finding tenants and collecting rent- is key to lightening your load, saving you time, and maximizing your passive income.
Here’s what you need to know about residential property management:
What is Residential Property Management?
Residential property management is the process of overseeing and coordinating the day-to-day operations of a residential property. Residential properties can include single and multifamily homes, townhomes, condominiums, and apartments. A few common examples of tasks that can be taken on by property managers include finding and screening tenants, collecting rent, and handling repairs and maintenance. A property management company can take care of all these tasks for you, giving you more time to relax and peace of mind that your rental property is in good hands.
Why Use a Property Management Company?
There are many benefits to using a property management company.
Save time
Dealing with the everyday operations of a rental property can be time-consuming, especially if you have other responsibilities at home or work. A property management company takes care of all the important details for you, so you can focus on other aspects of your life.
Save money
Managing a rental property yourself can sometimes lead to unexpected costs and missed opportunities, such as not taking advantage of tax breaks or losing money from vacant rental units or uncollected rent. A property management company can help you save money by finding the right tenants, maintaining competitive rental rates, collecting rent in a timely manner, handling maintenance issues quickly, accessing exclusive company repair discounts, and more.
What Services Do Residential Property Managers Offer?
Residential property management companies offer a wide range of services, from finding and screening tenants to collecting rent and handling maintenance requests. Before choosing a property management company, it’s important to determine which services you need so that you can find a company that offers the right combination of services for your rental property. Some common services offered by property management companies include:
Tenant screening and placement
Finding good tenants who will pay rent on time and take care of your property is essential to being a successful landlord. A property management company can help you find and screen potential tenants so that you can be sure you’re choosing the best possible candidates for your rental unit.
Rent collection
Once you have tenants in place, it’s important to collect rent on time and in full every month. A property management company can handle this process for you so that you don’t have to worry about chasing down late payments or dealing with bounced checks.
Maintenance and repair
When tenants move out, it’s important to get the unit back in rent-ready condition as quickly as possible. A property management company can handle all the necessary maintenance and repairs so that you won’t lose out on the rental income.
Financial reporting
A property management company can provide you with detailed financial reports so that you can see how your rental property is performing financially. This information can be helpful in making decisions about rent prices, expenses, and more. Many firms offer other administrative and financial services as well, such as keeping track of taxes, payroll, insurances, mortgages, and the overall budget.
These are just a few of the many services that property management companies can offer. When choosing a company to work with, it’s important to carefully consider your needs and find a company that offers the right combination of services for you and your rental property.
Are There Any Risks to Using a Property Management Company?
While there are many benefits to using a property management company, there can also be some risks, such as:
Less Control
When you turn over the day-to-day operations of your investment property to a third party, you lose some control of what happens on your property. For example, the property managers would likely be making some smaller decisions without your direct approval. There would be, however, a contract in place with the property manager outlining the details of the agreement to help ensure you’re getting the services you expect. Property management firms are often open to communication from you as well, but it’s good to keep this aspect in mind.
Cost
While hiring a property management company may save you time and money in the long run, it can be more expensive than managing your own real estate rental properties in the short term. It’s important to do your research and find a property management company that is transparent about any fees and offers services that are worth the cost. You’ll want to make sure it’s a good option for your individual situation.
Weighing the Pros and Cons of Residential Property Management Services
When deciding whether or not to use a property management company, it’s important to weigh the pros and cons carefully. Consider your own needs and goals for your rental property, as well as your budget, before making a decision. If you decide that a property management company is right for you, be sure to do your research and choose a reputable and reliable company that can help you achieve your goals for your property.
Property Owners- When Should You Hire a Property Manager?
There are several reasons why you might decide to hire a property management company. Here are some common scenarios in which property owners find it helpful to work with a property management company:
You don’t live near your rental property
If your rental property is located far from where you live, it can be difficult to manage it effectively. A property management company can help you stay on top of all aspects of your rental property, even if you’re located across the country or in another part of the world.
You own multiple properties
If you own multiple investment properties, it can be tough to keep up with everything. The more properties you own and rent out, the more you could likely benefit from working with a property manager. A property manager can take care of all the details and keep the ball rolling so you don’t have to.
You don’t have time to manage your rental property/properties
If your day job or other obligations are keeping you from devoting enough time and attention to managing your rental property, a property management firm can help. These companies have the time and professional experience to manage all aspects of your rental property, allowing you to focus on other areas of your life.
You’re looking for a more passive income source
If you want your rental property to be a passive income source, hiring a property management company can help. This allows you to cash in on rental payments while leaving the daily operations of your property in the hands of a professional.
You don’t have the necessary skills or experience
If you’re new to being a landlord, it can be difficult to know how to handle everything involved in managing a rental property. A property management company can help fill in the gaps with the skills and expertise needed to be an effective landlord, from finding prospective tenants to maintaining your property.
Choosing the Right Property Management Company for You
If you’ve decided that hiring a property management company is the right decision for you, the next step is to choose the right one. Here are some factors to consider when making your choice:
Experience
Look for a property management company that has a proven track record of success with experience managing residential real estate properties similar to yours.
Reviews and recommendations
Look for reviews from current or former clients on the property management company’s website, as well as recommendations from friends and family.
Pricing model
Determine what services you need from your property management company, then look for a company that offers those services within a pricing model that fits your budget.
Interview the company
Don’t be afraid to ask for an interview and get all your questions and concerns out on the table before choosing a property management firm. The more you know, the better decision you can make.
With these factors in mind, you can find a property management company that is right for your needs and the goals you have set for your rental property.
Residential property management can be a huge help to property owners and landlords alike, whether you are new to the business or have been at it for years. Property managers can take care of all aspects of property management so that you can breathe easier, enjoy a little extra time to yourself, and still have a successful rental property on the side. After all, who doesn’t dream of passive income coming their way? Just remember, when choosing a property management company, it’s important to carefully consider your needs and find a company that offers the services that are right for you.