What do rental properties and plants have in common?
They both need to be taken care of – to grow!
Unfortunately, simply owning an investment property will not set you up for life (although we wish it did). Just like a plant needs water and sunlight to grow every day, a rental property needs to be regularly maintained and occupied for you to get a decent flow of cash into your account.
Don’t have much time to rent out your property privately? Don’t worry about it! Most property owners hire a rental property manager to take care of the property. These professionals are often equipped with years of experience and have a stellar knowledge of the local market, meaning your property will be in good hands.
But how exactly will your property benefit from hiring a property manager, and is it absolutely necessary that you hire one? In this blog, we’ll explore which aspects of day-to-day property management are handled by a rental property manager and how they can contribute towards your property’s success.
What Does A Rental Property Manager Do?
Rental property managers have a wide range of responsibilities when managing your investment property. You can specify the exact management duties which you need them to handle in the property management contract which will be laid down between the two of you.
Generally, a rental property manager will handle the leasing process, oversee the legal aspects, manage the maintenance and repairs as well as conduct all the administrative work for your property. They’ll even help out with listing the property and know to avoid mistakes in the description like the condo vs apartment definitions!
Why Should You Hire A Rental Property Manager?
Rental properties require a considerable amount of time and energy to be spent on their upkeep and management. If you’re thinking of becoming a DIY landlord, you need to make sure that you can put in the needed hours. But if you’re unable to spend more time on managing a rental property, you need to find an expert who will – or risk dumping your life’s savings down the drain.
Let’s say that you’re caught up with a huge work project and haven’t been able to look for tenants. What happens then? Your property will remain vacant for months, your bills will be piling up and you may even have to pay thousands of dollars to get it back to the way it was!
Having an expert take over this responsibility will take this burden right off your shoulders. Property managers bring a lot to the table – and may even boost your rental property’s value in the long run.
Here are 7 reasons why a rental property manager may be a great fit for your investment plan:
1. Extensive management experience
Most rental property managers have years of experience in managing properties of all types and in dealing with a wide variety of circumstances. Whether you own a two storey or an apartment unit, or you’ve got a noisy neighbour or unpleasant surroundings, an expert will know how to best promote the property in a way that satisfies all the parties involved.
2. Local market knowledge and connections
An expert property manager will already have a trusted network of service providers and product suppliers. This means that any task handed over to them will be handled quickly and efficiently, letting you step back from the reins of management with more confidence.
A professional property manager will also have a stellar knowledge of the local market, knowing where to find the best tools and people for the job, and how to land the best deals in town.
3. Finds and screens tenants
Landing the right tenants for your property is one of the most important factors that’ll guarantee a steady rental income. Expert managers will often have a rigorous tenant screening process that’ll help you find reliable tenants who will honour the contract, pay the weekly rent and move in for the long-term.
The best property managers may even study your property and your requirements, and advise you on who your target tenant market really is.
4. Leasing made easy
Handling the leasing process on your rental property is no easy feat. It’s easy to quickly get lost between managing rental payments and finding new tenants. Throw in the mounds of paperwork and laws involved, and it’s enough to have you ready to give up altogether.
But what if the entire leasing process is taken care of – without you having to lift even a finger? By hiring a property manager or a property management company, you’ll be taking some of the most time-consuming tasks off your hands. You can also rest easy knowing that your property is taken care of by a team of experts who have your best interests at heart.
If you’re looking for an iron-clad guarantee that your leasing process will be smooth and automatic with absolutely no commitment from your end, a property management company may be your best bet. This is because rental property management companies will:
- Conduct appraisals and advise you on suitable rental rates according to the market
- Have an efficient system in place to collect rent and follow up on late rental payments
- Conduct routine inspections, handle maintenance issues and repairs, pay utility bills and manage tenancy agreements
- Conduct the lease renewal process a few months before the lease is supposed to end. This saves up enough time for another tenant to be found.
- Represent you at the tribunal regarding tenant disputes and stay up to date on tenancy laws
5. Act as the go-between for the owner and the tenant
Let’s face it – as the property owner, you are never truly “off-duty”. Your tenants may ring you up at any time of the day or night about any issue they may have.
By hiring a property manager, you may not only redirect all forms of communication to them, but may allocate certain time periods during which the manager may contact you about all the tenant issues they have received so far.
A rental property manager will be greatly responsive to both the owner and the tenants ‘ requests, and will ensure that both parties are happy by looking into their concerns immediately.
6. Added publicity
If you’re looking for tenants, you’re going to want to put your property in the public eye in any way you can. A rental property manager or a company will have a targeted marketing plan to appeal to your ideal tenants, highlighting some of your property’s best features to attract even more potential buyers. You also may discover that certain features in your property could raise your rental rate even higher!
Rental property management companies can:
- Organise professional pictures to be taken of your property, in line with industry standards.
- Create virtual tours and publish the floor plans online, allowing potential tenants to consider your property from the comfort of their homes
- Advertise your property on as many top real estate sites as possible. The company will also place a leasing sign at the property.
- Even carry out the duties of real estate agents by hosting open homes. This will help the team members get to know prospective tenants directly, and market the property to them in person.
7. Lays the foundation for long-term profits
“Investing in real estate is great if you’re in it for the long haul, not a quick return”
As a property investor, you want what’s best for your property. This means that you need to make practical and objective decisions about your investment, by minimising risks and increasing your returns.
If you’ve got a bit more cash to throw down, there’s no harm in having a back-up investment, in case things go south. By hiring a rental property manager, you’ll have more free time to expand your investment portfolio, which may generate significant returns in the long run.
A rental property manager will offer an unbiased and objective view on certain aspects of your investment plan. This will help you make informed and sustainable decisions regarding your property, by analysing certain situations from different angles.
Although hiring a property manager may cost a pretty penny, it may just be one of the best investment decisions you’ve made, especially if you won’t be around. So go ahead and partner up – but make sure to look out for these features when you do!
