Looking to make your property investment more hands-off?
The US rental market will reach nearly $60 billion by 2021, so it’s no surprise property remains an attractive investment. But managing a property can bring with it a unique set of stresses — not what you’re looking for in an investment. So how do you experience the benefits without the drawbacks?
That’s where property managers come in.
Let’s take a look below at the top 8 benefits of hiring a property management company.
Vacant periods in your rental property represent lost revenue. It should be a landlord’s goal to keep vacant periods as short as possible to keep the rent coming in and to maintain the property in good condition.
Your property manager can keep a close watch on your property, so they’ll know when it’s going back on the rental market and can advertise for new tenants. They can then process the new tenant applications ASAP to get the rent flowing in.
Property managers can also reduce vacancy periods by increasing tenant satisfaction. Faster response times and swifter repairs help to keep tenants where they are, reducing turnover and vacant periods.
If you’re managing multiple properties, you’re in increased danger of having at least one property empty at a given time. With a property manager, you can reduce or avoid these periods and maximize your income.
When you rent out a property, you need to know it’s going to be in safe hands.
Choosing a rental property management company can make the tenant vetting process easier, protecting your investment.
Your property manager will advertise to the kind of tenants you want to attract. They’ll then vet them with backgrounds checks, such as looking into their credit history and gathering references from previous landlords.
This can be an admin-heavy process, involving a lot of paperwork. If you’re handling it yourself, that can soak up a lot of valuable time. A property management company can handle this for you, allowing you to get the right kind of tenant without the hassle.
Property can be a legal minefield. There’s a lot to consider with respect to building codes and contractual obligations. Likewise, putting together a sensible (and legally cogent) tenancy contract can be more complicated than it first appears.
If you neglect a legal requirement through ignorance of the law or lack of time, you could land yourself in some serious legal hot water. Your investment could then become a nightmare of court cases, prosecution, and fines.
Property managers know the ins and outs of the legalities involved. They can make sure all the boxes are ticked and insulate you from any legal action.
Should the worst happen, your property manager will likely bear responsibility for the legal ramifications.
If you’re not deep in an industry, then it’ll always be the case that you don’t know what you don’t know. Without expertise, you’ll overlook things that will be obvious to those with experience in the industry.
The situation is no different in the property world. If you’re not experienced managing properties, you’ll miss important considerations and do things the long way.
Property management companies build their business around the industry. That means they’re sure to have a deeper knowledge of the property business than you. They’ll manage the property with greater efficiency, making the whole process easier for all involved.
One of the most apparent examples of this lies in maintenance. Property management services have businesses on hand to deliver maintenance, and they’ll get discounted rates from a negotiated supplier relationship. That means quicker repairs at a lower cost.
The day-to-day admin of managing a property can add up over time, particularly if you manage multiple properties.
Property managers have a host of responsibilities, from maintenance and repair to inspections and rent enforcement. Even a small portfolio of properties can become a full-time job, thanks to these management needs.
A property management company is equipped to deal with this kind of intensive management. They’ll have the staff and time needed to manage properties full-time, which reduces the burden on you and increases tenant satisfaction.
Investing in property abroad is fraught with difficulties. On top of potential time zone differences, you also have to deal with a lack of local knowledge and contacts.
This is where hiring a local property manager or a property manager that specializes in overseas properties can make a huge difference.
Your property manager can handle the challenges of investing in foreign property without its pitfalls. That leaves you free to collect the benefits without sinking time and money into its management.
When you start adding together the efficiency gains we’ve outlined, you’ll see the obvious conclusion: an increase in your investment returns from your property.
For property investors, profit is the obvious end goal. If you can improve consistent rental yield and reduce the impact of management fees, even a single property can transform its investment yield. Once you start adding multiple properties together, these results become impressive.
All these points add up to one priceless benefit: peace of mind.
Investment should be a way to turn the money you have into more money, with the eventual goal of improving your financial position. That’s all. If your investment forces you to take on more work and more stress, then it can defeat the object of investing in the first place.
With property management services, you can ensure your investment becomes a hands-off affair. You can soak up its benefits without compromising your lifestyle.
These 8 benefits of hiring a property management company make a strong argument for letting the experts handle your investments while you sit back and relax.
In the market for a property manager? You can contact us today.