Rental Properties are serious cash investments for real estate investors.
Well, it may seem quite simple; you buy a property, decide to rent it out, find a tenant, and you expect to relax on the couch while the money starts rolling in.
Unfortunately, It’s not quite that simple. When you do buy a property, you need suitable tenants. For that, you need to advertise, which costs money and requires attention because the wrong advertisement will attract the wrong tenants. While you wait for potential tenants, you need to maintain your property which requires more than a broom or a vacuum cleaner. Even if you do find tenants you need to constantly connect with them to ensure they are happy and they are keeping your property safe while they spend their lease term. Then comes the headache of collecting the rents and I can go on about how pesky tenants can be when it comes to payday.
Functions of Property Managers?
- Marketing Services – Most owners or real estate investors are new to marketing. Having a team of professionals with industry knowledge can surely give them an edge when it comes to marketing their property, fixing the right rents, selecting the right tenants.
- Managing Income and Expenses – Handling the smooth flow of funds for daily maintenance, repairs and also ensuring the rents are getting collected in due dates.
- Tenant Management – A responsible owner should ensure the tenants have all the basic amenities required as they move in. A Property Management Company will ensure this by Contracting with suitable vendors such as electrician, maid, plumber, grocery, WIFI for the daily needs of the tenants.
- Less Legal Issues – Having a property management company backing you ensures that there is less risk of a lawsuit. They ensure this by establishing and enforcing leasing agreements, conducting inspections and initiating evictions if necessary.
- Saves on Time – Having a property management company frees you from the obligations of being a landlord. It saves on time which you can freely invest in other ventures or business plans.
While for some people it may occur to them that they might be able to handle all issues related to their properties and think that they have the hours and resources required to do so, for most it simply isn’t practical, especially if they are working men, or are looking to expand their business.
If an owner does not have the time, expertise, or resources to manage all property-related issues, then a property management service is important for long-term sustainability and profitability.