Are you a landlord whose portfolio is growing? If you’re finding yourself without the time or the expertise to effectively manage your properties, you should know that you are not alone. Many property owners, especially those with multiple buildings or a separate full-time job, struggle to manage all of their properties as well as they would like to.
So what is the solution?
Often, it can be to invest in a property management service. But what does that entail, and what are the benefits? We’ll give you an insight into the pros and cons in this article, before giving you some tips for finding a great property manager for your portfolio.
What Are Property Management Services?
Property management services cover all the assistance rendered by a third party responsible for maintaining a home’s condition and satisfying its occupants. Rental property owners hire property managers to oversee the daily operations of their real estate assets.
Property management companies can manage both commercial and residential real estate properties. The number of responsibilities property managers’ have depends on their contract with the landlord. Generally, they can collect rents and handle home maintenance and tenant complaints.
There are several benefits to hiring a property manager for your properties. We listed some of them below.
- Tenant Screening
First impressions can be deceiving; even the most plausible, sincere-looking individuals might be problematic tenants. Therefore, renting agents and property management organisations take tenant screening very seriously. A good management service will run credit checks and examine references to increase the chance of getting a responsible tenant. On the other end, they can make sure that tenants move out of your property and hand it back in a good condition.
- Marketing Your Property
One of the main reasons landlords hire property managers is to assist them in marketing their property to prospective tenants. The property must be photographed and listed on multiple websites, including real estate sites. The more effective the marketing, the more likely a property will generate a lot of interest.
- Responding to Repair & Maintenance Requests
A property management service usually has their own list of approved and vetted contractors that can carry out repairs. This long-term relationship may result in favourable rates, especially for common repairs, and it can certainly be faster than taking your own time to find an appropriate tradesperson to complete the job. They can also think in terms of long-term maintenance, which can reduce the number of surprise repairs.
- Rent Collection
You may spend more free time doing what you want and manage your other business more effectively when you know you can depend on the property manager to collect the rent from your tenants in a regular, timely manner.
- Higher Rental Returns
Real estate agents and property managers are informed about the real estate industry, consumer demand, and market conditions in the area they serve. They can determine the current rental value of your house and the regions that would be profitable for investments. They can also advise you on ways to generate the maximum rental revenue or improve the property to increase its value.
- Deal With Legal Issues
A good property management company can handle your legal problems. They are familiar with the most recent tenancy legislation and know what steps to take to avoid and lessen potential legal fallouts. In addition, they can advise you on all current safety requirements and help you set up the appropriate inspections to ensure your property is secure and fully compliant.
While hiring a property management service is pretty beneficial, there are some drawbacks. Here are some of the potential disadvantages of hiring one:
- Hiring a Property Management Service Could Be Expensive
Perhaps the most significant barrier to employing a property manager is the price. But when you compare the benefits to the cost, it becomes affordable.
However, choose a property manager with a transparent fee. Ensure you know what you are paying for and what to expect. Experienced property managers would properly analyse their services and costs.
- Having a Property Manager Means Less Involvement for You
Hiring a property manager might not be the right move for you if you love being in charge of managing your property, especially if you want to be involved in every decision. There will be problems if you can’t trust the property manager to make the best decision for your building.
- Finding the Right Property Management Service Could Be Challenging
Finding a qualified property management team from the outset is another drawback. As soon as you hire a manager, you expect a high standard since they care for everything. However, you might have to interview a few options before finding the right one.
Before employing a property management service as a landlord, you must ensure that they have these qualities:
- The property management service must have the required license and qualifications. This is to ensure that they have the expertise you are looking for.
- Review exactly the package of services you would need them to provide. You might only need one or two of the services mentioned above, and many property management companies would be happy to provide you with a custom package.
- Ensure that your service provider has experience in caring for your kind of property. Commercial property management can be quite different to residential, for example, and blocks of flats are quite different to a portfolio of houses.
- Ensure that they have a good reputation and an established client base. See if you can find testimonials from other landlords and tenants – after all, you want to the property managers to maintain an effective working relationship with your tenants on your behalf.
- Check that the property managers are tech-savvy and up to date with the latest property management technology. Ask them how they will report to you each month, and what kind of data they can share.
- The property manager should consistently provide good customer service and offer tenants reliable and professional customer service.
Carefully select a property management company to prevent a problematic relationship. Make the extra effort to locate a company that will represent your interests and protect your property as you would.
Investing in a property management service is crucial if you have a large property portfolio that you can no longer handle by yourself. But ensure you get one that meets your needs and respects your position as the property owner.