Owning rental property is a great way to make passive income, but it can quickly turn into a full-time job if you don’t hire some help.
The more units you manage, the more you’ll have your hands full. Being a landlord isn’t easy. At some point, it makes sense to outsource some of the work to a local property manager.
In this article, we’ll go over all the benefits of hiring a property manager and why you should consider one. Though property managers typically charge somewhere between 8% and 12% of the rent per unit managed, it’s well worth the cost. Here’s why:
- Tenant screening
Experienced property managers know how to find good tenants and weed out bad ones. They’ll verify candidates criminal background, credit report, employment, and past landlord references to increase your chances of only accepting tenants who will:
- Pay rent on time
- Rent long-term
- Treat your property well
- And cause fewer problems
Tenant screening is time-intensive work, especially when you have a lot of units to fill. Outsourcing to a property manager will not only take a big weight off your shoulders but help you maximize occupancy rates and decrease turnover rates.
- Point of contact for tenant concerns
Having a property manager also gives you a nice buffer between you and your tenants. They’ll be the main point of contact for common tenant concerns like:
- Getting locked out
- Repairs and maintenance
- Noisy neighbors and pets
- Conflicts between tenants
Rest easy knowing your property manager will take care of these calls 24/7 and only forward the ones that must be handled by you personally.
Property managers also have a large network of local contractors like cleaners and plumbers who they can call on for regular maintenance and repairs. So you know your property and tenants are well taken care of.
- Better Marketing
A good property manager knows how to market a rental property to the right people. Not only do they have experience writing compelling ads, taking professional listing photos, and hosting open houses but they have the local real estate knowledge to help you set a competitive price.
Take advantage of a property manager’s marketing know-how to always have a replacement lined up as soon as a tenant moves out. Then you don’t ever have to worry about costly vacancies.
- Efficient rent collection
Property managers can help make rent collection as smooth as possible for you and your tenants. Usually, they already have systems in place to ensure rent is paid on time and that when it’s not, you earn late fees. In worst case scenarios, property managers can process evictions for you.
Enforcing leases this way is sometimes unpleasant, but it’s always necessary. Remember, you are running a business, and you can’t let tenants take advantage of you by allowing them to not pay rent on time or not at all. Use a property manager as a middle man to make rent collection less personal.
Property managers are also motivated to keep rent flowing because they derive their income from a percentage of the collected rent. So they’re a great investment to make if you want steady cash flow.
- Legal compliance
Lastly, a property manager can help you stay in compliance with housing regulations. They understand landlord-tenant laws and fair housing laws on the local, state, and federal levels, so they can keep you out of trouble.
Working with a property manager will prevent lawsuits and save you a lot of legal fees and headaches in the long run.
Adding it all up
Being a landlord is tough. But for a price, a good property manager can make the job a lot easier on you while increasing your rental income.
If you want to improve your tenant pool, marketing, legal compliance, and more, hiring a property manager is the way to go. So find one in your area today!