When executed correctly, the property manager can take pressure off residential property owners while giving them high-quality service and long-term boosts to profitability. In addition, the right partnership can take tasks off your plate (like rent collection, tenant screening, and more) while also saving you money and boosting your bottom line.
That being said, investors shouldn't settle for "any" property manager. Take time to look for the right qualities, ask questions, check reviews, and look for the features you need from an expert.
The start of the rental process is always how to market your rental. The best marketing applies strategies that attract good renters and reduce vacancy times.
Excellent Delaware County property managers know the right mix of compelling listing details, high-quality photos, and the ideal rental rate to make your properties stand out from other listings. While a new property owner may take many hours learning the lay of the land when it comes to advertising a rental, a rental manager can quickly connect you with the exact mix of marketing strategies that have worked for similar rentals in the past.
Preparing to bring your first renters in isn't all about marketing, however. It's also about your application and ensuring that you've obeyed all landlord-tenant laws regarding your rental. A great Delaware County property manager will be familiar with Fair Housing laws, including regulations about reasonable accommodation, so you can offer fair opportunities and fully legal access to any applicants interested in your rental property. Complying with the law helps investors avoid costly legal issues!
You might not believe how much time and money property owners get back when they let a property manager's professional maintenance team work on their rentals. Not only are the pros faster and safer than most of us when we're DIYing, but they're also more cost-effective for your budget!
The right Philly property managers have a vetted network of vendors to handle maintenance issues, from minor repairs to more significant issues, like plumbing problems or roof leaks. By consolidating maintenance work with a company that understands the type of maintenance rental properties needs, the savings alone can be a value-add for investors—along with better quality work!
The first time you experience a conflict with a renter, it can leave you rattled. Renters typically are great to work with, but occasionally there will be difficult residents, including those who find any excuse to complain or withhold the rent check.
That's why it's so helpful to have a property manager who has seen these difficult renter situations plenty of times before. They understand red flags and have a consistent procedure that they use to deal with challenging renters in a way that salvages the relationship when possible. When it isn't possible, the best property managers save you stress and help you through the legal requirements to initiate an eviction.
The occasional difficult renter is challenging enough, but they can pale in comparison to renters who have been exploiting loopholes for a while—sometimes called "professional tenants." These renters may know exactly what to say to get you to forgo a credit check or an employment history during the tenant screening process. They may also know exactly how much rent they have to pay to forestall eviction just a little longer, earning a free place to live.
As a newer property investor, it's easy to fall for these schemes the first time. However, property managers who have seen it all can note the red flags a bit earlier in the screening process to help you avoid placing one of these tenants in your property then dealing with the problems that come with them. This early-detection system can be the difference in saving quite a bit of money and time!
What other ways do property managers support property owners every day? From ensuring that the vacancy rate stays low to making sure you have the right kind of insurance, a rental manager is there to remember little things that can make a big difference in your bottom line. Rather than being surprised by the ups and downs of the real estate business, they have simply seen most scenarios before and are ready to handle them. It can deliver peace of mind to know that someone else is working to make sure your rental is well-maintained and generates solid income.
Running a real estate investment business can be tricky if you haven't done it before. Your property manager can help you with things like how to register your business correctly with the state and how to find the best tax deductions. Sometimes a profitable year vs. an unprofitable one can come down to whether you took all the appropriate expense deductions and evaluated the depreciation of your capital assets correctly. Your property management team should be able to help you work with a real-estate-knowledgeable accountant who can help you through since an optimized tax strategy is a part of running your business wisely!
Property managers also help investors avoid costly mistakes! Critical things like finding an excellent insurance policy or building an airtight lease are harder to achieve if you're a sole proprietor without an experienced team at your side. In addition, if you make a small error as an early-stage property investor, you can lose income that derails you from your long-term income goals. However, even seasoned investors make mistakes and benefit from a property management expert!
The reality is that many people start their investment property business by doing everything themselves. So it's no surprise that go-getters like property investors can often manage a lot of the work themselves! The question, however, isn't whether you physically can do it all, but whether you should hire a property manager so you can get some of your time and energy back.
If you live out of state, own multiple properties, or have other priorities that you can't get to often enough, a rental manager could improve your experience of being a real estate business owner and give you time back for other things. It's well worth considering, especially if you envision adding to your business over time.
Building a business in the income property world takes more time than most of us would think. Having just a few additional hours each week can be the key to seeing your business grow. Property managers handle the day-to-day of running your investment property business so that you can even consider purchasing that next rental home. Think about it: if you are running out to DIY every repair on your first rental property, how do you have time to network and check in to find great properties and get a competitive offer in immediately? The answer is: you don't!
Delegating to a property manager is a big part of building your portfolio and growing the business and long-term success!
In the end, all these features should be present in every Tri-State property management company, but how do you find the best property manager for you? It comes down to finding someone who can demonstrate that they have a solid track record of doing all of these things well. That means a professional first impression when they meet with you, as well as strong references and clear experience in the industry. They should make you feel well-treated, and they should communicate well since their initial interactions with you are an audition for their interactions with your renters!
As you explore different property management companies, check reviews (from other property owners and tenants), research websites, and make sure you choose a partner that listens to your goals and helps you generate long-term rental property portfolio success!
