Property managers can become an asset to your investment since they contribute significantly towards the success of your venture. They look after every aspect of managing and maintaining your property. They can even make some management decisions on your behalf. As such, your real estate business runs seamlessly even in your absence.
You can avoid dealing with an individual directly and hire a property management company instead. Nevertheless, you must be thorough during the recruitment process. If you skimp on the qualifications and qualities of a property manager, your properties could deteriorate, which may lead to losing some of your tenants.
1. Reasons To Hire A Property Management Company
You can do without a property manager if you don’t have a busy lifestyle. However, the whole process of managing your properties can be daunting and tasking. Although it isn’t mandatory to hire property managers, here are some compelling reasons why you might need one:
- Time constraints: Maintaining and managing property is more or less a full-time job. You should be available whenever the tenants need assistance. However, most property owners have other jobs. Other engagements could hinder you from performing optimally. Thus, you might need to hire someone to take on the management role on your behalf.
- If you have more than one property: The thought of managing several properties on your own could drain you. You can use professional assistance by hiring property management companies. Given the demanding nature of management, you should have a manager on every property.
- If you need help finding tenants: Property management companies are excellent marketing agents and could drive traffic to your property if you’re struggling to find tenants.
- If you live far from the property: Managing property from a distance can be challenging. In that case, it’s wise to hire a property manager living within your property’s location. This way, they can quickly respond to your tenant’s needs, such as emergency maintenance and repairs.
- If you have no management expertise: You may have bought a property but don’t know how to deal with tenants or property maintenance. It’s best to delegate the management roles to someone with the experience and training to handle the tasks properly.
If you’re looking for property managers, you may find out more about their services here. Hiring property managers is best if you’re mostly occupied. Remember, your tenants will require excellent services and professionalism. They must be comfortable staying at your rental property as they’ve paid for it.
2. Responsibilities Of The Property Management Company
Property managers have multiple responsibilities. This includes the following:
- Screening and approving tenants: If you have vacant units, you shouldn’t allow everyone into the property. Some could pose as aspiring tenants but have ill intentions.A property manager ensures you get the right tenants for your property. They communicate the policies and rules the tenants are expected to follow. Property managers are also responsible for reviewing the application papers and vetting your tenants.
- Supervising repairs and maintenance: Property managers will be responsible for finding reputable contractors to handle your repairs and maintenance issues. They can also negotiate for fairer prices and terms, given that the repairs can occur anytime.
- Collecting rent fees: Once you hire property managers, you won’t have to worry about rent collection. Property managers are in charge of collecting fees and ensuring everyone pays on time. Ensure you provide an account for all rent payments to make the process smooth and seamless.
- Evicting tenants: Property managers are responsible for evicting tenants who have failed to pay their rent. This may also apply to those who aren’t following your property’s rules or are being a nuisance to other tenants.
- Advertise and market your property: If your property has vacant units, the property manager can launch a marketing campaign to look for potential tenants.
A property manager can take care of your real estate property needs by taking on some essential services. You can hire an individual or contract a managing company to perform most tasks on your behalf.
3. Tips On Finding The Right Property Management Company
Hiring a company will be ideal if you’re uncomfortable working with an individual. A property management company will have several managers working on its behalf.
However, note that the property managers working under the company may perform similar services as individuals. On that note, finding the right company for your needs is generally easy. Here are some tips that’ll guide you in finding the best property management company:
- Licenses and certifications: The company should be certified to carry out management services. Otherwise, you risk getting a bad deal, and you’ll have no way to hold them accountable if they fail to deliver. The licenses vary from one jurisdiction to another. However, it’s best if the managing company has a real estate brokering or property management license.
- Track Record: Working with experienced property managers is an added advantage. This means they have experience handling tenants, and you can be confident they’ll be valuable to your investment.
- A cancellation policy: In case of negligence or violation of terms, you should be able to cancel the management contract. When hiring them, look into the contract’s termination stipulations and possible fees.
- Insurance: The company should have insurance should there be a problem with their services or managers. The more protected the company, the more chances of avoiding liability issues.
These tips will come in handy when vetting a property management company. The bottom line is that the company should provide excellent services to manage your property efficiently. The goal is to reduce your liability and engagement. You can gauge their expertise and services based on their experience.
4. The Difference Between Hiring Property Managers And Resident Managers
While property managers could be independent individuals or contracted by management companies, they take on all management responsibilities, and you don’t have to oversee them. The contracting company can do it for you. If they need assistance, they call their company, and you don’t have to be involved.
On the other hand, a resident manager is one of the employees you hire to assist in managing your property. They’re responsible for your property’s daily maintenance and upkeep but not other managerial tasks. Residential managers may not have the eligibility to take on all management responsibilities.
5. What Does Full-Service Property Management Mean?
If you want the managers to perform all management chores, you contract them on full-service terms. In this provision, the managers are expected to be available full-time. This means you won’t be involved in any managerial tasks.
The other option is where you contract them on a partial basis. In this situation, you don’t delegate all the managerial responsibilities. You’re still responsible for some tasks, such as collecting rent. If you’re not engaged and have some time to spare, it’s best to keep tabs on your property.
You can check and regularly inspect your property to ensure the managers are doing an excellent job. If managers know you’re occupied, they might not perform the tasks to your standards. This could negatively affect your business and your tenants’ experience in your property. Therefore, it’s a good idea to make surprise visits to your property regularly.
6. The Cost Of Property Management
The management fees depend on your agreement with the company. Some companies charge a monthly fixed fee or percentage of your monthly revenues. Other companies charge hourly rates or according to the number of units they manage. Before you get into a contract with the property management company, you must define their terms. It helps make a good working relationship for the business’s success.
On the same note, it’s best to get estimates from several companies before settling on one. Compare the charges and choose the company that offers the best value for money for their services.
7. Property Management Contract
It’s not a good idea to hire simply by oral agreement. You and the managing company should get into a legally binding contract. This ensures the parties deliver on their end and do an excellent job of making the business successful.
You should consider hiring by contract. The contract can be for a short or long period. If it’s more than three years, it’s regarded as a lengthy contract. A contract for more than three years may result in laxity by the managing company. In most cases, property owners will give short contracts for one or two years.
It’s a business strategy to keep the managing company in check. For you to renew the contract, they should work efficiently. The advantage of hiring by contract is that the managers will ensure they work well to get the contract renewed. The contract should outline on what terms you can terminate the relationship. For instance, if you’re unsatisfied with their services, you must be able to terminate their services.
Before handing the keys to your property managers, it’s best to look into the contract. Stipulate what you require of them. You can legally terminate the services if they fail to deliver them. As the property owner, you should provide a written notice fifteen to thirty days before the termination date. You should also specify the reasons for termination to avoid legal trouble.
Conclusion
Hiring a property manager could be the next right step for your properties. Take your time to research how best the property manager can help steer your business to the next level.
Once you’ve found a property management company, ensure you sign a contract if hiring them for full-time services. This helps keep them in check and ensure your property is appropriately managed. You’ll be able to stay in business and attract tenants.