Even for the most experienced landlords, accurately setting your expenses for how much maintenance costs is a challenge that constantly must be tended. Some landlords skip out on property managers because they think property management fees are too high, but they don’t measure out the benefits. When you have property managers on site to take care of problems and help service issues, there are more than just a few benefits that you end up seeing.
Here are three reasons why the property management fees that you’re paying might not be as ludicrous as they seem on paper.
While you might not think of owning property as a customer service job, you need to provide good service to your tenants to keep them happy. Your renters are going to rely on you to respond promptly and give them the attention they’re looking for.
Any property management firm or any landlord who wants to take a hands-on approach needs to deal with their tenants an a nearly daily basis.
When there’s an open unit, they need to advertise that ASAP. They’ll be interviewing and screening prospective tenants to ensure that they fill the building with the right people.
While you might think this is a valuable element of owning property, that might not be your forte. If drawing up leases and handling all the move-ins and move-outs on your property isn’t the thing you want to take up your time with, then you need a manager. Property managers handle all of these elements to keep your property full of tenants who pay on time, respect the space, and don’t cause issues.
Your property managers are going to be the ones to collect rent, handle any late rent payments, and deal with problems along the way. In the worst-case scenario, when there’s a need for eviction, they’ll make sure that things are handled as smoothly as possible.
While you’re scouting new investments, places to purchase, and trading your assets, you don’t need to worry about ordering a plumber for unit 11B. Leave that to property managers so you can focus on the revenue building elements of your business.
No matter what type of building your own, there are going to be bureaucratic elements to deal with. There’s a lot of local filing of paperwork to get licenses to do any major work that you need to have done. You also need to have someone to deal with any new tenants.
When a new prospective tenant applies to your building, you have a lot of work to do on day one. You need to run a credit check and a background check to see what you can expect from each tenant and which ones are a safe bet. You’ll need someone to collect all the leases from everyone and keep them well organized.
Rather than having to deal with any issues related to local laws and subsidized housing, you can get all these agreements set up by a third-party. This keeps you from having to deal with any problems related to rent payment or registering any subsidized units, as the laws vary from state to state.
When it comes to licenses and repairs, again, every state has its own laws and limitations that need to be followed by building owners. There’s no single form that applies in every situation or even for every city, so you’ll need someone local who is familiar with how things are done. At times, you need to have a form run down to an office by a certain time of day so unless you’ve got someone on site, you’ll struggle to meet on the deadlines.
Part of being a good landlord is to make sure that your tenants are always provided for. If you’re not willing to take care of the roof or the hot water heater on time, you’ll not only spoil your relationship with tenants but you’ll also hurt your building. You need to fix things in a timely manner and look for problems in advance to ensure that you don’t suffer deterioration of your building.
If the elements of your building are old or are starting to fail, you’ll get frequent calls from tenants looking for help. You need to remain attentive to the needs of your tenants if you want to keep them around. While turnover allows you to sometimes increase the price of units, it’s not always a good business model.
For one, you want your building to remain full when someone comes to rent. It allows you to ask for more.
Secondly, every month a unit is vacant is another month in rent that you need to recoup with other units. Vacancy offers opportunity but too much vacancy is a loss leader.
Many landlords also own the land that a building sits on, so being on site matters when it comes to keeping things clean, attractive, and pleasant. Keeping flowerbeds well maintained and the grass cut on a regular basis helps to increase morale. When your tenants see you doing things for the building, they’ll be more likely to treat you, the building, and rent payment deadlines with respect.
When you’re paying adequate property management fees, you’re keeping the people working for you happy. If you keep your property managers happy, they’ll help keep your tenants happy and in a lot of cases, even your neighbors. A well-tended property full of happy tenants makes everyone around you feel good.
For more of the benefits of hiring property managers, check out our latest guide.