For most would-be landlords, rental management seems like a straightforward process -and simple enough.
You'll buy a house, rent it out, and collect rent every month. "It's an effortless plan," you think to yourself. "How difficult could it be?"
The truth though, is that things aren't always quite so straightforward. Tasks like advertising the property, sourcing tenants, screening applicants, and then keeping the property in good condition can all be tremendously time-consuming when you're doing it yourself. And once you have two or three properties under your belt, the amount of time that's required to tackle everything can multiply exponentially.
If you're tired of spending your weekends mowing the lawn at your rental, or if you're thinking of adding a few properties to your portfolio, then you may want to consider bringing a property manager on board. A property manager will be able to take on much of the day-to-day work for you -as well as the bigger tasks like sourcing and screening tenants, doing repairs and maintenance, and fielding tenant phone calls.
In addition to saving you from a world of hassle, a good property manager can also help to stave off a number of risks that often befall first time landlords -such as property damage or lawsuits due to mismanagement. A property manager also represents excellent long-term value when you consider that outsourcing the everyday rental tasks frees you up to focus on other things -like growing your portfolio, or managing your investments.
With this in mind let's take a look at a few different advantages of hiring a reputable property manager -and see why you'll want to think about bringing one on board.
They'll Help You Save Time
Placing ads, corresponding with tenants, dealing with maintenance, and arranging for repairs all takes time -and lots of it. This, of course, is multiplied by the number of rentals that you have.
With a property manager, you'll be able to outsource all of the time-consuming tasks, freeing you up significantly. It's the best solution if you'd like more time to spend on other tasks, including your day job, managing your investments, or even growing your portfolio.
They'll Handle Tenant Screening for You
One of the best things about a property manager is the fact that they can handle the entire tenant sourcing and screening process for you. Advertising vacancies, then processing applications can be a tedious and time-consuming process. It's also an area that also requires a working knowledge of landlord-tenant law. For instance, not only will you want to perform thorough credit and background checks; but you'll also want to make sure you do so in a way that's in compliance with the law; keeping you free and clear from potentially harmful accusations of discrimination.
Since a reputable property manager will already have experience sourcing and screening tenants, they'll also be well-equipped to handle all of the necessary steps and paperwork for you in a professional manner. They'll also be able to streamline the process to help you find a qualified tenant as quickly as possible.
They Can Help to Lower Vacancy Rates -And Rent Your Property Faster
Every month that your property sits empty is one month's rent that's lost. Not to mention you'll also be responsible for the utilities and other bills while the property's vacant as well.
For most landlords, looking to cut vacancy times is key to maximizing profits, and a good property manager will be able to help you get your property to market, and rented as efficiently as possible. Since they'll know the 'sweet spot' when it comes to pricing your property competitively, they'll be able to help ensure that there's minimal downtime in between tenants. In fact, at Renters Warehouse, we have an average tenant placement time of just 17 days.
They Can Increase On-Time Rent Payments
"The check's in the mail," "I'll get it to you this week," "I'll have to pay you a few days late this month..." The excuses associated with late rent are something that most landlords have had to deal with at some point or another. Unfortunately, rent paid late rarely ends well. In many cases, it's the start of a series of late payments; eventually leading to non-payment as well.
With a property manager, though, there's no need to worry about late payments. If your tenant is late with the rent, you can guarantee that your property manager will follow up and enforce the late fee. Since most property managers collect their payment from the rent as well, they'll be motivated to keep those payments rolling in. And worst-case scenario, they can execute the eviction process.
They'll Help You Navigate the Legal System
One of the biggest concerns for landlords far and wide, is dealing with potential legal issues that arise, and maintaining compliance with the law. As a landlord, it's your responsibility to keep up with landlord-tenant laws, and continually adjust your policies and procedures to maintain compliance. The law is always changing, and keeping up with the federal, state, and city-specific regulations and requirements can be difficult. Areas such as the Fair Housing Act, making disclosures to tenants, and handling evictions and security deposits are just a few areas that are important to pay close attention to.
The good news though, is that a reputable property manager will already be aware of the updates and changes, and should be able to help you maintain compliance -and can even offer advice if you get stuck.
They'll Serve As a Point of Contact
Let's face it; dealing with the day-to-day issues that arise with your rental is one of the least favorable aspects of being a landlord. Phone calls about overflowing toilets, A/C units going out in the middle of summer, and faulty appliances always seem to come through at a bad time.
With a property manager, though, you'll be free from being on-call 24/7. They'll handle the situations as they arise and keep you informed, but you can say goodbye to frantic searches for plumbers in the middle of the night.
At the end of the day, hiring a property manager will reduce a great deal of the stress and headaches that traditionally come with being a landlord. You won't have to worry about dealing with late rent, enforcing policies, or evicting tenants again. Instead, you can sit back and collect the rent every month -just as you'd always planned!
At Renters Warehouse, we understand that it's not always smooth sailing with rentals, but our team of qualified Professional Landlords is happy to help. If you'd like to learn more, have a look at Why Should I Rent My Home? Or chat with one of our Professional Landlords today.
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