When most people think of a property manager, they think of someone who handles hundreds of units or commercial properties. While this is true to some extent, many investors hire property managers even for single-family properties and single units when self-management starts getting out of their hands. Landlords stand divided when it comes to hiring a property manager; some consider it a worthy investment while the others consider it a waste of money. However, it’s a fact that a property manager can be a great asset to your turnkey real estate investments.
8 Benefits of Hiring a Property Manager
Here are eight important benefits of hiring an experienced property management company for your turnkey investment properties as a rental property owner:
1. Higher Quality Tenants
If you don’t have enough experience in the real estate industry, screening tenants can be a daunting task. Due to lack of knowledge, you might end up renting out your property to unreliable tenants. An experienced property manager can help you find trustworthy and reliable tenants through verified screening processes. Most tenants found by property managers:
Pay rent on time
Stay long-term cause fewer issues during their stay
Minimize damage to the property
So, if you want to avoid rental scams, make sure you hire a skilled property manager with several years of experience in the property management field.
2. Fewer Legal Issues
A single unreliable tenant can become a nuisance and cause a great amount of financial and legal stress. A good property manager comes with thorough knowledge to protect you from potential lawsuits and legal issues. Different states have different laws that protect landlords, as well as affect them in one or more ways. So, if you don’t want to burn a hole in your pocket fighting legal battles, use the money to hire an experienced property manager.
3. Shorter Vacancy Periods
With a property manager managing a rental (and a full leasing staff) by your side, your property will never be vacant for too long. A professional property manager can help you:
Prepare and maintain the rental properties
Suggest cosmetic improvements to maximize your rental income
Determine the optimal rental rate
Lease the property, stage it, and take professional photos
Setting the rent too high can lead to longer vacancy periods and vacancy rates and setting it too low can lead to lower rental incomes. Therefore, you need the knowledge of a property manager to set the best rental rate to suit the tenant’s budget, as well as your pocket.
A good property manager will have a time-tested tenant retention policy in place. These policies are vital and require a consistent and systematic approach. A happy and satisfied tenant is more likely to increase the duration of stay than one who has issues with the landlord or the property.
4. Better Rent Collection
Handling rent collection is an important aspect of property management. To ensure consistent cash flow, the tenants must pay the rent on time each month. By hiring a property manager, you add a buffer layer between yourself and the tenant. They’ll be the ones who will deal with tenant excuses, rent collection, and eviction (if required). This leads to collecting rent more often and more reliably.
5. Lower Maintenance and Repair Costs
Tenants value landlords who provide them with maintenance assistance. By hiring a property manager, you gain access to a network of reliable home maintenance and repair professionals. You can then hire these contractors for good quality maintenance and repair work at reasonable prices whenever maintenance issues arise.
6. Growth and Maintenance of Your Rental Property
By identifying problems and repairing them early on, you can avoid critical and more expensive issues. A knowledgeable property manager will tell you that the key to growing the value of your property is preventive maintenance. They can also help you perform regular maintenance evaluations, prepare a written maintenance schedule, and prepare detailed documentation.
7. Effective Marketing of Your Property
A property manager with several years of experience in the field knows what to mention and where to advertise to grab the attention of potential tenants quickly. Since they handle multiple properties, they can negotiate fair prices for online and offline ads. Moreover, they’re acquainted with sales and know how to close a deal when they get an inquiry for a potential tenant.
8. Personal Benefits
More freedom — Once you hire a property manager, you’re free to travel anywhere you like without having to worry about the property’s maintenance or the tenants.
Less stress — After hiring a property manager, you don’t need to indulge in evictions, chasing tenants for rent collection, paperwork, finding contractors, etc.
More time — As a property investor, time is money for you. A property manager can help you switch from micromanagement of the property to doing more productive things such as asset management.