#1 Saving money with contractor relationships.
A management firm vets contractors, looking for the best prices and highly trained technicians who are licensed, bonded and insured. Outside services combined with an in-house maintenance staff and a capable supervisor to monitor routine inspections spot issues before they turn into major problems. Happier residents, fewer high-priced emergency repair bills.
#2 Increasing revenue with high quality residents.
Screening residents preserves the revenue stream. Experienced managers know how to spot red flags on applications and identify those applicants most likely to pay on time and take good care of the property. Advanced technology and screening tools allow leasing agents to evaluate dozens – or hundreds – of applicants thoroughly and quickly.
#3 Avoiding legal problems, financial pitfalls and scams.
TransUnion reported that it costs landlords about $1917 to evict a resident. The credit reporting agency recommends that property managers report rent payment history as a way to help renters improve their credit score and improve risk management for landlords.
A skilled manager understands landlord-resident laws governing resident rights, eviction processes and safety. A few other potential legal issues include:
- Leasing disclosures
- Rent collection and late fees
- Notification and access for inspection
- Licenses and permits
#4 Boosting occupancy numbers.
A veteran property manager understands the importance of short vacancy periods. Managers offer owners access to proven marketing strategies and rate comparison tools to capture the highest return on investment based on community standards.
#5 Stabilizing higher retention rates.
Keeping residents happy is perhaps the best way to improve occupancy rates. A good property manager looks for ways to enhance the customer experience. That means renters have access to resident portals that make paying rent efficient and convenient. Maintaining a safe, attractive community and building relationships are two other ways managers increase satisfaction to curtail frequent turnover.
#6 Simplifying accounting and oversight.
An experienced property manager shares information about tax deductions and investment opportunities for owners’ consideration. While most managers don’t help owners prepare tax returns – that’s a job left to CPA’s and tax professionals – they provide tools like on-demand owners’ statements and reports that keep owners informed about the income, expenses and maintenance requests.
#7 Defining the rent capture process.
Efficient rent collection processes ensure financial success for property owners and managers. The management team assumes responsibility for establishing and enforcing strict payment guidelines. That means homeowners don’t have to spend time and money chasing down the rent every month.
#8 Enjoying the benefits of property ownership without giving up personal freedom.
Some people invest in real estate as a means of funding an active retirement. With a reputable property management team minding the fort, owners can travel extensively, spend more time with family or explore other hobbies and interests – without worrying about their property.
#9 Increasing property value.
Annual preventative maintenance inspections, repair or replace policies for appliances and initiating property upgrades to stay competitive protect assets and increase value. Property managers stay in constant communication with owners about steps they can take to manage property value in the market place.
#10 Reducing stress.
The nine benefits above all serve to reduce the stress of property ownership. It’s not easy to put a price tag on living a life free from the hassles of being a landlord, but most would agree that less stress is definitely a valuable benefit.