What is Property Management?

If you’re a homeowner, then you know that property management is no easy task. Imagine the workload of owning and managing more than one property. And what about managing an entire portfolio? It shouldn’t come as a shock, but for an individual with a full-time career and a family to look after, it can be really difficult to manage an entire portfolio of rental properties.

Don’t get us wrong. We are not suggesting that you shouldn’t invest in rental properties. For real estate investors, rental properties are a highly profitable business and a means of a serious cash flow. Unfortunately, managing your rental properties is not as easy and straightforward as it may sound. It requires a serious time commitment. There are so many tasks that need to get done on a regular basis: general maintenance, advertising the properties, staying in touch with the tenants, and the list goes on.

This is where a good property management company can come to assistance. In this article, we will break down everything you should know about property management services, starting from what actually is property management? What do property managers do? And why is it important to hire them?

As the name suggests, property management is the act of managing properties. To be more specific, property management is the act of handling and overseeing all aspects of a rental property in a way that maximizes the property owner’s return on investment.

A good property manager always has their eye out for reliable tenants who will pay rent on time, respect the property and avoid bothering other residents. A good property manager keeps the building in top condition by responding to maintenance issues as soon as they arise or are noticed. They also ensure that curb appeal is outstanding. 

What do property managers do?

A property manager is a property owner’s right-hand man, and without them, property owners would have to manage all their properties on their own.

Property managers are the backbone of your investment property. Property managers are responsible for making sure that your property is a success. Their job roles and responsibilities include:

• Advertising rental property as well as ensuring that the property remains rent-ready for potential tenants.
• Screening of prospective tenants by thoroughly examining their credit, criminal, and rental history.
• Writing and enforcing lease contracts or agreements.
• Collecting monthly rent payments on behalf of the owner.
• Addressing any maintenance issues.
• Making sure that the property is maintained in accordance with the local laws in order to save the owner from potential lawsuits.
• Keeping themselves updated about the landlord/tenant laws in order to handle evictions due to non-payment, harassment, property damage, or any other reason.
• Making sure that both renter and owner know their obligations and duties.
• Maintaining financial records for the owner.

Property managers are multitaskers, and they need to be able to balance the needs of tenants and owners with a variety of day-to-day tasks. These professionals are well-versed in their industry, and they are armed with the right software solutions to help them with their work. These computer-based systems allow them to manage front office functions and balance other daily operations more efficiently. With all this in mind, you can see how important the services of a professional property management company are!

As a property owner, you have the power to choose how involved you want to be with your rental space. If you like being in control, you can ask your property manager to give you daily updates on what’s going down at your property. On the other hand, if you are busy with other commitments, you can still have peace of mind knowing that your investment is in great hands.

Why is it important to hire a good Property Management Company?

All the roles and responsibilities mentioned above can be quite overwhelming for any property owner to do it by themselves. A property management company with a team of professional property managers is better equipped to respond to your property’s maintenance issues in a timely manner. They will also behave professionally when dealing with tenants and their requests.

The thought of hiring a property manager for your investment property might seem an expensive idea, but it’s worth considering. Property managers are responsible for maintenance and repairs on the building to save you from potential lawsuits. They also collect rent payments from renters, keep accurate records so that you don’t have to worry about whether someone has paid on time or not. You just need them on board as long as they can help manage all those headaches.

The pros outweigh the cons when it comes down to choosing between managing your investment on your own versus outsourcing management duties altogether by hiring a professional property management company.

The following are some other reasons why you must hire a good property management company:

No hassle

If you’re considering purchasing a property for the sake of investment, make sure that you have enough time to spare. Property management is not a typical 9 to 5 job. Tenants will contact owners outside work hours and on weekends with requests ranging from simple maintenance questions to complaints about other tenants. Ask yourself whether you really have that much time and stamina to deal with such hassles. If the answer is no, then hire a property management company to manage your investments.

By hiring a property manager, an investor can free up time, and mental energy for pursuing other ventures or enjoying life instead of having to deal with the everyday tasks that come along with owning rental properties, like attracting and screening tenants, collecting rent, maintaining the property, and the list goes on.

Flexibility in investment opportunities

If you are going to self-manage your rental property, it makes a lot more sense to invest in a property that is close to your current home. This means that you will have limited investment options. On the other hand, if you hire a professional property manager, you will have a range of property investment options. You can invest in rental properties that are miles away from your current address.

Return On Investment (ROI)

A good property manager knows how to maximize the rental returns for your investment property. If you have the right tenant, they will make sure that their rent gets paid on time and in full every month. This is what makes an efficient management team so important. With a good property manager on your side, you can enjoy maximum return on your investment.

Safety For All

Property management is more than just leasing out a good deal. It takes the vigilance of an eagle and sharp eyes to ensure that your tenants are safe from crime, harmful substances, or other possible hazards like structural damage. A good property manager responsibly conducts thorough screenings for any potential renters-not only in order to protect the owner’s best interests but also those who live around them.

Bookkeeping

Your property manager will also manage your day-to-day bookkeeping needs with the help of a professional accountant. They will not only maintain your financial records, but they will also make sure to record tenant requests and document the costs of general maintenance, inspections, and repairs conducted on your property.

Deal with defaulting tenants

A property manager’s job is not just to collect rent. They also need to deal with the legal procedures involved if a tenant defaults, and this may include negotiating directly with tenants who are behind on their monthly payments or filing legal processes for those that refuse to leave your rental. In any case, a property manager will have your interest in mind and will do everything legally possible to make sure that you get what you deserve.

Manage vendor relationships

Property managers are the key to a successful rental property. They have long-term relationships with tradesmen, contractors, suppliers, and other vendors that provide reliable service for great rates. Property managers will also ensure your property is well maintained by overseeing maintenance work and coordinating it with outside contractors, so you don’t have too much on your plate while still getting what you need from them.

You don’t have to deal with tenants directly.

Renting out your property can be a challenging process. It is essential to maintain the proper professional distance from your tenants so that you do not end up creating personal relationships with them, which can affect your decisions. For your best interest, it is important to hire a professional property manager. Property managers will manage everything related to your rental properties on your behalf. This way, you will no longer have to deal with tenants directly. 

As a property owner, you will ultimately be the one to decide what is most important and make the decision that fits your lifestyle. But if there are certain tasks or aspects of ownership that require more time than others, it may not hurt to hire a professional property manager who can take care of those for you.