Owning rental property is a great way to earn additional side income. But when investing in a rental property, know that the income you earn from a rental property is not passive. You have to invest tons of your own time to make the money. Several new property investors don’t know this until they are neck-deep overseeing the operations of a rental.
Managing a rental property can be as time-consuming as a 9-5 job because there are so many layers to making the investment work. If time freedom was your main reason for investing in the property, you would be disappointed. A rental property will compete with your day job for time and energy. But thankfully, there is a way around this problem.
To avoid your rental becoming another job alongside your regular job, it is vital to hire a property manager to operate the property on your behalf. Hiring a property manager is the only way to automate a rental and transform it into a source of passive income. What are the benefits of hiring a property manager, for you as a landlord and for the tenants in your rental?
How Professional property management benefits Landlords and tenants
1. Efficient tenant screening
Property managers deal with tenants every day. The constant exposure to would-be and existing tenants allows them to fine-tune their ability to spot problems tenants before leasing to them. Landlords often have to wait until they have leased to a tenant before finding out what kind of person they are. A property manager will save you from losses if you lease your property to the wrong person.
2. Access to professional tools and relevant networks
Due to the number of properties under management, property managers need professional tools to stay effective. They also maintain webs of relationships across the housing industry: standing arrangements and partnerships with local experts and regional suppliers. These resources bring tremendous advantages to the property manager’s ability to manage your building and the tenants in the rental.
3. Act as an interface between landlords and tenants
As a rule, tenants prefer not to deal with the landlord directly. That is because landlords often feel an emotional connection to their property. It can impair their sense of objectivity when interacting with tenants. Tenants are happier when dealing with a third party. They can express their needs and concerns without any fear of conflict.
4. Shorter vacancy periods
Both landlords and property managers lose money when a rental is vacant. However, landlords often lack the expertise to fill those vacant units quickly. Most landlords don’t have the marketing experience to find tenants quickly to reduce vacancies in their rental property. Property managers, on the other hand, have tested systems for finding quality tenants in the shortest time without using up more resources.
5. Reduction in tenant turnover
Property managers have strategies for reducing tenant turnover in a rental. By weeding out the wrong tenants, property managers increase the probability of only leasing to quality tenants. That helps them keep the issues in the rental to a minimum. A good property manager also knows how to create the right conditions to make quality tenants want to renew their lease.
6. Ensure that tenants abide by lease terms
Some landlords have trouble getting their tenants to pay the rent consistently. They may also struggle with getting tenants to respect the lease terms. That is common with landlords who are not great at one-on-one interactions. For such landlords, hiring a property manager is essential. Property managers know how to ensure that tenants follow the rules. They are not averse to handling unpleasant tasks like evictions.
7. Help ensure compliance with local laws
Keeping track of existing landlord-tenant laws for their area is not always possible for landlords. As a result, it is not uncommon for landlords to do things that expose them to legal liability or put them in trouble with the authorities. Property managers not only know the existing laws, but they also have systems for keeping up-to-date with new laws.
8. Save money and make more money
Property managers help landlords save money by streamlining maintenance. They can attract lower rates from suppliers and technicians. Because they are bulk purchasers, they get priority service from suppliers and workmen during emergencies or shortages. The overall impact of all that is landlords get to make and save money.
Finally, when trying to hire a property manager for your rental, you want to make sure the person you hire is specifically suited to the needs of your property and understands your goals as a property investor. That is because the property manager acts as your representative, and if your values are misaligned, you will have conflicts.
Are you in the market for a competent and reliable property manager?
