[fa icon="calendar"] 08.25.2016 / by Rory Williams
A good property manager can significantly increase the value of your investment. This is why so many experienced real estate investors will tell you that a good management company is well worth the price. Here are a few ways that hiring a property manager can help your business:
Help Instigate Growth
While you may not consider a property manager a good source of lead generation, they probably know more people than you would think. In fact, one of the most often overlooked benefits of working with a property manager is business growth. While this may not be your main reason for hiring one, it should definitely be taken into account.
A property manager is likely to have numerous contacts in your area such as contractors, mortgage brokers and even maintenance specialists. If you maintain a good relationship with your property manager, they are likely to refer you to others when the opportunity presents itself. You never know when you will meet a new contact that will change the way you do business.
Find High Quality Tenants
The key to running a successful property rental business is to find the right tenants. If your property is constantly vacant, or if turnover rates are high, you won’t have a consistent cash flow and will miss out on lots of revenue. One of the key functions of a property manager is to keep your property filled with the right tenants. Not only does this mean marketing and promoting the property, but properly screening tenants as well.
While it certainly is possible to evict a bad tenant once they have entered the property, it can be a real hassle, so it’s better to screen them in the first place. A good property manager will review applications, make follow-up phone calls and give you a good idea of the type of tenant you will be working with. A good tenant is one who will:
- Pay on time
- Sign long-term leases
- Treat the property with respect
- Cause fewer maintenance issues
An experienced property manager will be able to quickly sift through applications and identify warning signs of a bad tenant. By allowing a property manager to handle the screening process, you will be protecting yourself from scams or lawsuits.
Save You Time
As a business owner, time is one of your most valuable assets. More free time means more time spent on finding new deals and growing your business. Conversely, if you have to spend time dealing with contractors and tenants issues, your business will probably suffer. Even if you own just a single property, hiring a property manager can save you lots of valuable time.
Issues pop up all the time. The occasional phone call or maintenance problem will not be an issue. It will be the constant travelling back and forth and mental energy spent worrying about future problem that will take a toll. You can also expect short periods of time where multiple issues will arise and suck up lots of your time. If you already have a full schedule and can’t give the proper amount of attention to your properties, hiring a property manager is probably the way to go.
Increase Property Value
A good property manager can perform what is referred to as "preventative maintenance." This involves putting systems in place that catch and fix maintenance issues before they grow into larger, more costly, problems. Doing this requires a written maintenance or check program, detailed documentation and regularly scheduled maintenance checks. A good property manager can also provide feedback and offer suggestions efor upgrades and modifications that can increase the property’s value while reducing maintenance and insurance costs.
Is Hiring a Property Manager the Right Move for Me?
As a business owner, only you can determine if hiring a property manager will help you reach your goals. Every management company is different, but the core benefits should stay the same.