Why Enlist a Property Manager?
You are ready to move out of your first home and would like to rent it out. You think to yourself, “I can rent out the property and manage the new tenant on my own. How much time can it really take?”
Industry statistics show real estate investors spend, on average, 48 hours leasing and 47 hours managing their property per year. If you live within 30 minutes of your investment property, self-management can make sense. Living farther away can be more cumbersome. In a 2020 National Association of Realtor study, about 54% of landlords engaged in some form of property management services.
Outlined here are some of the considerations before deciding to hire a management company for your property.
Industry Knowledge - Experienced professionals will have the knowledge of what makes a turnkey rental in your local market. In addition to fresh paint and sparkling condition, agents are familiar with current trends such as the appeal of luxury vinyl tile versus wall-to-wall carpet.
Marketing - Marketing and showing the property to prospective tenants takes time. Sometimes properties need exposure on additional websites beyond the reach of the local Multiple Listing Service (MLS). If the property is near a military installation, housing websites for the military may be advised. If the property is available during a season of the year when there are not as many potential tenants wanting to move, other marketing strategies may be needed to increase visibility.
Tenant Selection - The owner makes the ultimate selection of a tenant, but a property manager can provide valuable input. Employment/income, background credit and rental references are all components of selecting a new tenant. Owners will also consider how soon a new lease would start as well as the length of the lease.
Rules & Regulations - Understanding applicable federal, state, and local laws. In addition to Fair Housing laws, lead-based paint disclosures, distinctions between service animals and pets, and tenant rights statements are all components of a rental transaction an owner might encounter.
Maintenance - Ongoing property maintenance is probably one of the top headaches for the owner/investor, especially if the investor isn’t local. Having a dependable network of local, dependable, licensed contractors is essential for successful property management. The service providers need to be responsive, efficient, and cost-effective.
Bookkeeping - Monthly and annual accounting is the ongoing link between the management company and the owner. Property managers track the monthly expenses associated with the property, and the monthly income (rent) and compile all the data into an annual statement. This annual statement then simplifies tax preparation regarding the property.
Whether you have a home, a commercial property, or a portfolio of properties you are looking to lease, the Patera Properties team is here to help you every step of the way.
