You’ve invested in real estate, and the rental property is ready for tenants. So, now what? Before seeking renters, find a property manager. Property managers make owning property manageable with their ability to care for the tenants and the property when you aren’t around. Let’s discuss what a property manager does and how they benefit the property owner.
What Does a Property Manager Do?
A property manager does just about anything that has to do with the property. Some investors choose to only hire one for specific needs, while others prefer the manager to handle everything. Here’s a list of some things a property manager does:
- Collects rent
- Handles maintenance
- Finds tenants and markets the property
- Understands rental laws
- Screens tenants
- Oversees landscaping upkeep
Basically, whatever the owner needs, a property manager does. There are several costs to owning a rental property. When you consider all the necessary expenses, it’s clear to see how a property manager actually saves you money by quickly handling issues you don’t have time to address.
The Benefits
We’ve mentioned what a property manager does, but how exactly do they benefit the rental property owner? There are two answers to this question, and they are time and money. Let’s look at each.
Time
Some owners live in the same area as their rental properties. Others live thousands of miles away. You don’t have to live far away to benefit from a property manager. When tenants have needs, they expect quick answers and results, and that’s understandable. If an important appliance breaks in the middle of the night, they can’t wait days for a repair. Rent needs collecting, maintenance schedules need continual care, and new tenants require screening. Unless you intend to invest in no other properties and feel married to the one you have, you need a property manager.
A property manager frees up your time for more investing and everything else you do in life.
Money
The goal in real estate investing is to acquire an optimal ROI (return on investment). Therefore, you should cut costs wherever possible to make this happen. The property owner pays the property manager. Still, having a manager saves the owner money.
Let’s say you’re on vacation and a tenant’s heat goes out in the dead of winter. Do you want to deal with that while lying on a beach somewhere? On top of that, what if you can’t get ahold of anyone to fix the issue? Now you have cold, unhappy tenants who aren’t going to stick around for you. However, you can avoid having a broken furnace and losing rent from unhappy tenants. With a property manager, these issues won’t grow or occur in the first place because your manager will handle them immediately. You can actually go away and know that you have someone who will take care of the property and tenants.
Understanding why property managers make owning property manageable is part of the process of getting into real estate investing. It’s tempting to go about it alone, thinking you’ll save money and handle everything. Don’t fall into this trap and become caught in a situation that’s over your head with no one to call for help.