Using a property manager has many benefits, including saving you time and money. If you’re a new landlord, you may think it’s better to try and manage your property yourself. The problem is that efficient property management requires a significant investment of time. When you have a property manager, you can devote more time to finding new investment opportunities. You also have the flexibility to expand your portfolio and own property in real estate markets that offer the returns you seek.
1. More efficient rent collection
Property managers deduct their fees from the monthly rent you get in, so they are motivated to collect rent consistently. Being consistent with rent collection is important to make sure you receive payments on time each month.
For tenants, property managers will clearly outline rent collection policies upfront so there are no misunderstandings. Tenants who fail to pay on time can be evicted if necessary if these policies are not enforced. It can be hard for you to collect rent payments and deal with non-payment issues if you lack time to deal with such tenants or do not wish to approach things the legal way.
Property managers have the right collection processes in place, so rent collection becomes more professional and efficient. For example, there are reliable rental companies in Colorado Springs, Boulder, Denver and Fort Collins that help in renting out your property to verified tenants. Their property management service is seamless and ensures everything from rent collection to timely property maintenance. Also, their tech-based processes allow tenants to pay online. This ensures that landlords can receive funds electronically into their accounts and rely on a steady income from their rental properties.
2. Fewer legal issues
Property managers have a strong understanding of laws, regulations and ordinances. They know how to avoid issues from the start when it comes to fair housing laws and landlord/tenant laws. The fair housing law prohibits discrimination due to race, color, religion, sex, disability, familial status, or national origin. You may not even realize that your actions are discriminatory. The knowledge of a property manager can help you from having to face costly litigation if you violate the law and a tenant files a lawsuit against you.
Landlord/tenant laws deal with the rights and obligations of landlords and tenants. This includes the handling of security deposits, lease agreements, etc. Security deposits are limited under most state laws. You have to repay them in full minus deductions for repairs or cleaning costs. There are laws in various states about how soon you must return a security deposit when a tenant moves out. You usually have to provide a detailed list of damage and repair costs to tenants. Property managers will take care of this for you.
3. Solid monthly reporting
Your property manager will provide you with monthly property management reports. This enables you to see how your rental property is doing financially. An income and expenditure report allows you to see exactly what is coming in and going out. You can see what balance is available and what funds you have available for unexpected expenses. You will see how much maintenance costs so you can make more informed decisions about property maintenance.
Examining monthly reports can help you to assess profitably and make adjustments if necessary to get the most financial benefit from your property. You can also start to set goals you want to achieve in the short term and the long term. Your goal for the short term may be to make a small profit every month, whereas a long-term goal may be to expand your property portfolio.
4. Effective property maintenance and repairs
Maintenance requests are usually one of the biggest problems for landlords. Your income is not so passive when you continually have to deal with tenant complaints. Even ideal tenants will have appliances that break and issues that need attention. Tenants feel valued when their needs are met and are more likely to care for a home. If you are slow to respond or don’t respond at all to tenant requests, you are likely to have a high tenant turnover. It can be costly to keep finding new tenants.
Property managers usually work with regular service providers or employ in-house maintenance staff. This enables them to receive preferred pricing and volume-based discounts. They will usually pass this on to you and offer discounts for maintenance services.
They will also perform regular inspections so they can fix issues before they escalate. This can reduce your bills for emergency repairs. Tenant satisfaction increases when property managers proactively handle requests or complaints, including after-hours emergencies.
The above four reasons should give you some idea of how using a property manager can be of great benefit. You can save time and the hassle of dealing with maintenance issues. You can use the extra time to find investments and grow your property portfolio. Property managers can collect rent using efficient processes and help you to avoid legal issues, which can save you money. Their reports can help you to make informed financial decisions.
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