Do you own an investment property that you are renting out and are currently handling all the chores of owning it?

Thinking of investing in rental property, but aren’t sure if you’re up to the task of homeownership?

If you answered yes to any of those questions, whether you’re keeping or considering investing in a single-family rental (SFR), duplex, or triplex, you should consider hiring a professional property management company to take the work off your shoulders. .

Let’s take a look at what property management is, what a professional management company handles, and how to decide not only if it’s time to hire one, but also how to hire the right property management company.

What is property management?

Let’s start by understanding what a property management company does and doesn’t do. There are several critical tasks that a property manager can help you with.

Set the appropriate rental rate: You can always approximate this by looking at the classifieds, but a good property management company actually does extensive market research to set a rental price for your property. This ensures that you have an excellent balance between maximizing your monthly income and maintaining a low vacancy rate.

Rent collection: One of the most difficult aspects of owning is collecting rent. Property management companies have efficient and proven systems that will do a great job of collecting rent and keeping payments on time.

Marketing and advertising your rental unit: When vacancies occur, you want the rental unit to be filled as quickly as possible. A professional property management company has experience helping you market your property the right way to make sure someone moves in quickly.

Search and management of tenants: The property management company will take care of finding and managing tenants for you. This means screening new tenants for credit and criminal checks, collecting references, and signing the lease. Once the home is occupied, maintenance management and routine and emergency inspections are part of what a professional management company will do for you.

Management of relationships with contractors and other suppliers: Do you have deep relationships with all the handymen, tradespeople, contractors, vendors, and vendors needed to properly manage your rental? Probably not. But a property management company does, and can provide you with the best work for the best price, while handling the burden of overseeing necessary maintenance projects for you.

Keeping you in compliance with the laws Housing regulations and property laws are complicated and confusing when you rent and maintain your rental property. These can include local, state, and federal regulations, along with fair housing regulations like the Americans with Disabilities Act. A property manager can keep you out of trouble by keeping your property up to date and in compliance with all of these regulations.

Allowing you to invest from afar: If you’ve moved to a place where investing in rental units doesn’t make sense, you might think that investing in SFRs or other rental properties isn’t possible. With a good property management company at your side, your investment opportunities won’t be so limited.

I only have one property; So why do I need a property manager?

If just reading about all the tasks a property manager can handle for you isn’t compelling enough, consider this: Do you want to be able to go on vacation without interruption? Do you really enjoy phone calls about plumbing problems at 3:30 in the morning?

Chances are, you want the freedom of getting out of town on vacation or just having uninterrupted time with family on vacation. He doesn’t like the task of dealing with emergency maintenance in the middle of the night, and probably dreads the idea of ​​trying to find a good tenant when the ones he already has move out.

Even if you only have one investment property that you are renting out, you can greatly benefit from hiring a property management service. They have decades of experience that you would be hard pressed to match and can ensure your property stays immaculate while maximizing your profit.

Okay, I’m convinced, but how do I know who to hire?

The best way to learn about quality management companies is based on the experience of others. If you’re local to your rental property, attend regional real estate investment association meetings to get recommendations from other property owners.

You want to make sure you find out how many units the company manages and how many employees they have doing the work. A trained employee with the right tools and proven processes can successfully manage 30 to 40 units, as long as he isn’t playing accountant.

When interviewing different qualified property management companies, here are the questions you should get answers to:

• How much? Generally, the monthly fee for property management is between eight and twelve percent, plus expenses. Remember you get what you pay for, so it’s important to balance cost and services.
• How well do they communicate? You want someone who uses email, but still answers the phone. If you don’t get a response on time, it’s time to go somewhere else.
• How easily can I terminate the contract? If things work out, what does it take to get out of your contract? Make sure you know this up front, along with any penalties.
• What experience do you have with Section 8? This can be extremely important, as Section 8 homes and renters are excellent income opportunities. Make sure they have the right experience with such properties.

If you do your research, you can easily find a reputable company that will handle your rental investments for you. This will free you up to enjoy the rewards of your investment without all the hassle.