What Can A Property Management Company Do For You?
Property investment is always accompanied by a bundle of responsibility. Apart from the initial cost of purchasing your property, you must also pay in time and in energy before the money ball would even budge. The last thing you want is your inexperience to hinder your progress and drain more cash out of your pockets.
Unfortunately property management is hard work, particularly if you have no prior experience. Not only would you need to have a great deal of knowledge in the financial, legal and economical fields, the amount of time you have to invest to maintain your property is immense. For starters, where would you even begin!?
Thankfully this is where property management companies steps in.
They are an agency that works with you to increase the amount of money you can reap from your investment. They work for you by completing all the tasks required in maintaining a property. From completing tasks of the mundane (e.g: dealing with petty tenant complaints) to the unfamiliar (e.g: sorting out legal technicalities), they make sure that they have everything covered.
Basically, property management companies operate and maintain real estate. They help their clients by ultimately ensuring that their property is helping to fill a bank account and not drain from it.
So what are the sorts of things that property management companies can do for you? To help you understand what is involved, here are the major areas that they will help you deal with:
This is arguably the most important role a property manager has. It involves accomplishing various tasks to ensure that your property gets rented out. Hence it is always the first step to churning in all that money.
To successfully market a property, your property manager needs to remain up to date on current market trends and rental rates. Afterwards they will utilise this information to predict future trends, and redirect their marketing approach based on these patterns.
Being able to stay abreast of ever-fluctuating property prices is certainly a difficult task. It requires knowledge of the current economic situation and the ability to determine the influence of social variables on property prices. Therefore property managers are constantly researching to heighten their understanding of market trends.
The ability to stay current with property values also serves to ensure that the current value of your property accurately reflects the amount of money you are receiving. That is why rent usually increases after each rental period. Due to the gradually growing demand for housing, property prices are slowly increasing over time. Hence, a landlord would be underpaid if their tenant is still paying the same rent as they had ten years ago!
Secondly it ensures that, while maximising the amount of profit you can earn, your property is being rented out at a competitive rate. As tempting as it may be to rent out your property at a ridiculously expensive price, it is not a viable way of earning cash. After all, your property will only turn in profit if it is being rented out – so you need to be able to attract tenants in order to make your investment worthwhile.
Property managers also ensure that your property remains a hot commodity by recommending your property for marketing campaigns, and involving it in advertising initiatives.
As if that’s not hard enough, all this work must be done within the budget that you and the property manager have agreed to work within. Now that’s a lot of responsibility!
Convincing tenants to fall in love and move into your property is only the first step. The property manager must then be able to get along and meet the needs of the tenants by responding and acting upon any requests or complaints they may have. In a way, your property manager has to serve both you and your tenants at the same time!
In addition, property management companies must ensure that tenants are abiding by everything in the lease agreement and they must collect rent on time. Maintaining this relationship takes a lot of time and effort. Oftentimes home owners find their tenants disagreeable. Yet they cannot act upon these emotions and lash out at them.
Furthermore if you’re unfortunate enough to come across non-paying tenants and you’re someone who loathes confrontation, at least now you have someone to help you sort out what needs to be done to legally kick them out.
In terms of facilities, the property manager is in charge of the general upkeep and maintenance of your property. This means that they are the ones who need to make sure that the plumbing, electrical appliances and other aspects involved in home maintenance are properly dealt with. In order to do this, they must remain well connected to the relevant repair companies so that they can call up the right people when things go wrong.
Although the task seems simple, bear in mind that property managers are always working within the budget that you have both agreed on. However they cannot simply find the cheapest repair company available – they are also responsible for ensuring that the quality of the repair is up to par.
Property management companies are also responsible for ensuring that the condition of your property remains at a high standard. They need to make sure that your tenants are happy with their living conditions, and that all their needs are met and problems resolved. This of course also helps in forming a good relationship with the tenants.
4. Administrative works
Every expense and property management activity must be carefully recorded and monitored. Income verification, credit reports, renewal fees, repairs, insurance costs etc. are just a few of the documents you will need to carefully file away.
These records are necessary for future reference and may even be needed to be used as legal proof should it become necessary to take the tenant to court (for example in cases where they need to be evicted).
Admittedly, all this documentation and evidence taking is a mind-numbing and boring task which thankfully, property managers will take care of for you.
With all the hectic events involved in successful property management, splitting a bit of your profit to hire a property management company is well worth it.
Besides after a long and arduous day at the office, do you really want to sit behind another desk trying to calculate how to maximise your profits? Even if you’re willing to put in the extra hours, maintaining a property outside of your immediate geographical location is immensely difficult.
Yet having all these responsibilities taken off your hands will buy a relief more valuable than what it would cost to hire a property manager.