9 Benefits of Hiring a Rental Property Manager
Property managers offer many services to landlords including rent collection, property showings, and move-in/move-out cleanings. However, there are at least nine additional benefits of hiring a rental property manager that you may not have considered.
Power to Invest Out of State
In certain markets around the country, it’s exceptionally hard to find profitable real estate investments. If you’re looking to build even a modest portfolio of multiple properties, you may need to look out of state if you happen to live in a market such as California or D.C. However, being a landlord requires boots on the ground. Unless you’re lucky enough to have willing and capable family and friends in an out of state market, you have no way of finding and managing distant rental investments.
Hiring a rental property manager gives you the power to invest out of state in lucrative markets such as Texas, Ohio, and others. Your property manager can act on your behalf in any market, including an out of state market where you don’t live. Unless you have other connections, hiring a property manager is probably the only way you can successfully invest in out of state rentals. Once you do get a quality property manager to represent your interests, the sky’s the limit as far as your investment opportunities.
Early Knowledge of New Opportunities
Some property managers offer turnkey investment opportunities in addition to property management solutions. Once you’ve developed a stable relationship with a PM, they’ll get a sense of the types of rental investments you’re interested in. You could ask to be quickly notified of newly available turnkey investments as they come up. Your PM can also let you know if they notice other properties up for sale in the same neighborhood that you might want to consider. In other words, your PM can also act as an unofficial “scout” for new opportunities.
In-Person Oversight of Renovations
New rental investments often need renovations before they’re ready. As you may know, renovation work needs to be carefully monitored to ensure quality, finished project. When you can’t personally be there—such as if your investment is out of state—your PM can provide in-person oversight of renovations. This is especially convenient during the last stages of the renovation, when the contractor may be eager to move on to the next project. Small finishing touches like paint touch-ups or the installation of cabinet knobs are often overlooked. It’s nearly impossible to get a contractor to come back after they’ve moved on. Your representative at the property manager company can make sure all the I’s are dotted, and the T’s crossed before the contractor takes off.
Expert Advice on Pricing Right
You’ll have an easier time of keeping your rental properties leased when you price them in the sweet spot. Local market shifts and fluctuations in the economy make it challenging to figure out what the rental rate should be. Too low and you’re leaving money on the table and unnecessarily cutting profit margins. Too high and you have extended vacancies.
Your property manager provides expert advice on pricing right in the market where your property is located. You always have final say, but it’s awesome to get that valuable expert advice as part of the property manager’s services.
Insight Into Neighborhood Trends
Neighborhood conditions are constantly changing, and not always for the better. Throughout the years, it’s obvious when a neighborhood has become a trendy destination or when it’s gone completely downhill. However, the subtle signs along the way are always there if you pay attention.
Your property manager is “in the trenches,” so to speak. They see when a neighborhood is becoming more or less popular. They can read the overall trends of any particular neighborhood. They notice when new construction is happening when improvements are being made, or when the crime reports in an area are increasing. Your PM is a valuable trend spotter who can keep you informed. You can get ample warning from your PM when you might want to scoop up more rentals before prices increase, or sell before the bottom drops out on your investment value.
Money Saved on Evictions
Between filing fees, time spent in court, hired security costs, man hours, property damages and vacancy time, the cost of eviction for a landlord can range between $3500 and $10,000. Formal evictions are necessary when a tenant fails to pay the rent, abuses the property, engages in illegal practices or does something else that violates the lease terms.
Hiring a property manager inherently saves money on evictions. PMs can screen tenants, run background checks, look out for tenant scams and monitor the tenant’s care of the property. These services and the subsequent protection against evictions far outweigh the nominal fees that you’ll pay to a property manager.
No Need For Handyman Skills
Lots of different skills are needed to take excellent care of a property. Some tasks must fall to professional tradesmen, but most can be done by a skilled handyman. If you don’t have the necessary skills, there’s no need to learn them. Property managers hire trained men and women who already have the abilities to do things like repair lawn sprinklers, troubleshoot faulty drainage, patch and plaster and much more. By hiring a rental property manager, you never have to concern yourself with learning handyman skills if you don’t want to.
No Need to Find Labor
When you hire a rental property manager, you never need to worry about personally finding and hiring skilled labor, either. You probably already know how hard it is to find good help. Property managers maintain long-standing relationships with local tradespeople. Instead of combing services review pages or subscribing to contractor review sites yourself, you can rely on your PM to either take care of the maintenance issue in-house or hire through their network of quality trusted workers.
Finally, one of the most rewarding aspects of hiring a rental property manager is your freedom. When you have a PM taking care of your rental investments, you have the freedom to travel extensively, spend time with your family, focus on other projects and much more. Little else in life compares to having personal freedom. It’s an intangible landlord benefit that you can only get if you hire a quality rental property manager.
As you can see, a property manager gives you a whole host of benefits that reduce your stress, increase property value, protect you and save time and money. When you hire a PM, you have a whole team of people under one roof who are looking out for your interests. Whether you have just one investment property or you’re looking to build a real estate legacy, your first step should be hiring a rental property manager you can trust. If you’re in the market for a property manager in Texas, we hope you’ll give us a try. Contact American Real PM to learn about our services.