Property management isn't a walk in the park. There are tons of things to consider, from getting quality tenants to maintaining the properties down to collecting payments. Whether you own a residential building with several units or have real estate commercial investments, you need a real estate professional to take care of everything. That is where a property manager comes into the picture.
For the uninitiated, a property manager is someone hired to oversee the day-to-day operations and manage various aspects of rental properties. Their scope of work varies, from promoting vacant properties to repairing units up to handling tenants. Most property owners or investors get a property manager as they have several properties to manage, don't have time to do so, or need help with legal and economic issues.
In this article, we'll share with you why it's important to hire a property manager for your real estate business. Keep reading to learn what your hired manager can do for you.
1. Ensuring Occupancy
What's with investing in properties when they remain vacant, and you can't make money out of them? That's where a property manager plays a crucial role.
A property manager does two key things. First, he'll make sure your properties won't remain unoccupied for too long. That's where marketing and promotion come into play. Second, he'll ensure your tenants will continue to lease your properties. The ultimate goal is to ensure the consistent occupancy of your properties.
2. Getting Quality Tenants
Screening for tenants and closing a deal with them is crucial. As much as possible, you don't just get random people to occupy your properties. You want to ensure you have quality tenants who can keep up with the terms and conditions of the agreed contracts.
A property manager can handle the complex process of tenant screening. He'll set out stringent yet fair qualifications for your properties' occupancy. Things your hired manager wants to ensure include a long-term lease, timely payment, minimal property damages, and fewer tenant problems. Therefore, he'll factor in things such as the tenant's source of income, employment or business, rental history, pet ownership, and even lifestyle.
3. Performing Property Maintenance
Property management includes regular upkeep and repairs whenever necessary. There are things that tenants have to handle themselves once they occupy the properties. For the most part, they must take care of their own HVAC system, home appliances, and house interiors.
On the other hand, your property manager must handle some aspects of your properties. For instance, he has to ensure the scheduled cleaning of the roofing system. He'll also have to deal with plumbing repairs such as a burst pipe or water damage.
What's great about property managers is that they have access to licensed and insured contractors and tradespeople. These professionals can handle property inspection, maintenance, and repairs.
4. Addressing Tenant Concerns
One of the most crucial parts of property management is addressing tenant concerns. Of course, these vary from one tenant to another. However, a property manager must be there to take the necessary steps.
For instance, one tenant may request a repair for leaky faucets while another may have issues with rowdy neighbors. Even conflicts among tenants may arise, and your hired manager has to deal with them professionally.
5. Handling legal matters
Legal matters around property rentals can be the most difficult to handle. That's why it is all the more necessary to hire a property manager who also has legal knowledge and expertise in real estate.
There are several legal aspects your hired manager needs to ensure. These include fair tenant screening, legally binding contracts, safe property conditions, rent payment collections, protection of tenants' personal information, and legal tenant eviction.
Whether you have Ayala Land investments or own an Eaton high-rise with several units, your property manager will ensure the protection of both parties — your tenants and your business. Ultimately, your hired manager will have your best interests in mind.
6. Boosting ROI
Investing in properties all boils down to earning a return on investment (ROI). Of course, your rental business is supposed to give you profits, not liabilities. That's where a property manager comes into play.
First, your manager will ensure no properties or units remain vacant so that they will continue to generate income for you. Also, he'll ensure that you'll be able to save up on property inspection, maintenance, and repair. Lastly, he'll collect payments and ensure tenants pay on time.
Property management is key to a successful rental business or real estate investment. Hiring the right property manager for your real estate investment will contribute to your overall business success.