As the regulatory landscape has gotten more complicated during COVID-19—with a halt on evictions and late fees, as well as other local laws being passed to help keep renters in their homes—property managers and their knowledge within the market, ability to maintain profitability and tracking ever-changing legalities are even more valuable than it was a year ago.
If you've owned income property for any length of time, you know that managing a rental can be financially rewarding. At the same time, you've also likely discovered that property management requires a large commitment of time and effort. While you may think the do-it-yourself approach may save you on your management expenses, the complexity of the market, COVID regulations, maintenance costs and ensuring the profitability, DIY could in fact be more expensive in the long run.
Property Managers feel that their clients have viewed their services as more valuable during COVID-19 for many reasons. Most importantly; communication, services and insight. Rental owners need property managers’ help in maintaining these critical tasks to secure their properties’ profitability more than ever now.
What are some other areas that make good Property Management worth its weight in gold?
Setting the right rental rates: A good property management company will conduct a thorough market study in order to set a rental price for your property, ensuring that you achieve the perfect balance between maximizing monthly income and maintaining a low vacancy rate.
Collecting and depositing monthly rent payments on time: Property management companies have efficient, tried-and-true systems in place to effectively collect rent and maintain on-time payments.
Marketing and advertising your property: Through long experience, a property manager will know exactly where to market your property and how to craft compelling advertising materials.
Finding the right tenants: Experienced property managers are experts at finding good tenants, and will take care of all the details, including the securing all criminal background and security checks, running credit reports, verifying employment, and collecting previous landlord references.
Managing tenants: The property manager will handle both routine and emergency maintenance, take care of routine inspections, and manage any situations where conflict resolution is required.
Managing vendor relationships: Property management companies have relationships with maintenance workers, tradesmen, contractors, suppliers, and vendors that it's almost impossible for an independent landlord to duplicate.
Ensuring that you're in compliance with regulations and property laws: There are a multitude of applicable laws and regulations to abide by when renting and maintaining your rental property. These include local, state and federal regulations, as well as fair housing regulations (such as the ADA). A property manager can help you avoid lawsuits by keeping your property up-to-date and in compliance with these regulations.
Enabling you to invest in geographically distant properties: If you manage your own properties, you're pretty much limited to investment opportunities within a tight radius of your own home. By hiring a property manager, you can take advantage of investment deals in any location you wish.
Maximizing the profitability of your time: By having a property manager take care of the day-to-day aspects of running your income property, you're free to spend your time identifying further investment opportunities or otherwise furthering your career.
Andrew L. Propst
MPM® CPM® CCIM®