Investment properties are meant to generate profits for the land owners. There are even benefits for non-citizens, too: individuals who make qualified real estate investments can obtain an EB-5 visa for a green card. No matter what your situation is, property managers can help make your investment a seamless experience by allowing you to generate a more passive income. But in all too many cases, they end up becoming anchors. The costs of maintaining the property and tracking down payments from tenants quickly becomes more than most small landlords can handle. So what are the choices? Well, you can move in and basically spend the rest of your life directly overseeing the property. Or you can assign the management of the property to a professional property manager who can help you make money.
This is what property managers do for a living. It is their job to maintain a property and maximize the rent role. The best ones do this very well. That is why they are in demand. So stop looking at hiring a professional property manager as an expense. Look at it as an opportunity to let someone else handle the operations while you sit back and count the greenbacks.
Don’t think that property managers only handle large apartment complexes. Many property managers will oversee a variety of properties including single family homes, condominiums, townhouses, apartments and HOA communities.
How can they do this? Well, it all comes down to scale. The more properties under a management in a certain area, the lower the per unit management costs. Also, this means they can afford to have some of the best tradesmen in the area either on salary or on call. This is a BIG plus, as you want to best plumbers, carpenters, and HVAC repairmen working on your property. Did you know that a leaking toilet can waste up to 90,000 gallons of water in a month? Well, a good property manager would never let that happen.
Ok, let’s get to the list as I am sure you are waiting with baited breath to learn how an experienced, professional property manager can help you make money.
Better Maintenance = Lower Operating Costs
It’s actually common sense. Well-maintained properties cost less to operate. An experienced manager is constantly assessing the status of the properties they oversee. This includes regular travel paths, think of them as visual inspections to make sure that everything is the way it should be.
They are also pro-active. Property managers do not wait for something to break before it is replaced. They have a preventive maintenance schedule which they are managing on a daily basis. By doing this, they ensure that the physical plant is in tip-top shape at all times. This lowers operating expenses and generates more profit for the landlord. In fact, this is one of the biggest ways that property management pays for itself.
Properly Managed Property = Better Tenants
It does not matter what part of town your properties are in. If they are well-maintained, something odd starts to happen. A better class of renters will want to live at your properties and in turn, they will look after the property as well. Why not, this is their home.
These high-quality tenants will want to stay long-term and they will pay on time. This is a big plus for any landlord and it actually helps the property to generate more profit. Think about it, vacant units cost money, so do late payers.
Another benefit of a property manager helping to attract quality tenants is that maintenance costs will go down. Even in the oldest of properties. By maintaining a quality property with quality tenants some strange starts to happen in the neighborhood. Other landlords will start to take better care of their properties as well. This makes sense as better cared for properties have a higher market value.
This is what property managers do. Twenty-hours, 365 days per year. I mean you would not call the cable repair man to work on your plumbing. So why wouldn’t you choose a professional to take care of your properties?
Peace of Mind
I was going to stop at three, but I thought of something which should be obvious. Having a professional property manager on your team actually, frees you up from managing the property. This means you don’t have to answer that phone call at 2 in the morning. Also, you can take that vacation as you know the property is in good hands.
As you can see, having an experienced property manager on your side makes sense. It does not matter if you manage 10 units or 4,000 units, a property manager will help you to make money.