Are you a Real Estate Investor who specializes in having your properties rented out? Are you the one actually managing your properties or are you paying someone to do it for you? Investing in Rental Properties is only one of the ways investors use to earn money and grow their wealth. The savvy investors diversify their portfolio by buying single-family, duplex, or triplex houses in order to maximize their returns and hire someone or a company to do it for them.
Hiring somebody else to act as the landlord on your behalf is a very smart move. It not only frees up your time to enjoy the things you love doing, you also eliminate the nuances of being a landlord and maintaining the property. This kind of business is known as Property Management.
What is Property Management?
Property Management is taking care of Rental Properties owned by another individual or a business entity. They are the ones responsible in setting the rental rate, collections, looking for prospective tenants, maintenance, and complying with the law. Its role is similar to a landlord with the exception that they are done by licensed professional Real Estate Brokers for a fee.
Here are some of the different responsibilities they can do for you:
Setting the rental rate
Property managers are just like Real Estate Agents. They have access to resources they can use to their advantage. They know how much the rental rates are for a specific location and they try to find the best way to maximize your monthly income by setting competitive rental rates and keeping vacancy rates low.
Collecting the rent
They will also take care of one of the most difficult things a landlord must do, that is, collecting rent. They run things just like how they would run their business. This means they have systems put in place to make sure that the task of collecting rent is as seamless and efficient as possible.
Marketing and Managing your Rental unit/s
Property Managers have the necessary experience in marketing or advertising your rental properties to make sure there are tenants occupying your property most of the time. It is also their responsibility to screen the prospective tenants about their credit history and even their criminal records if any.
Maintenance of your Property
The task all homeowners must face is maintaining their respective properties. As a business entity, property maintenance firms have business relationships with different independent contractors they can easily call upon if problems arise. This gives you, the property owner, peace of mind knowing your properties are well taken cared for.
Complying with the Law
They know the law and does what is necessary to keep their operations legal. If in case a tenant has failed to fulfill his or her dues, property managers know what to do legally to evict the tenant or get them to pay their dues. This keeps you out of harm’s way for a lawsuit is definitely your worst nightmare.
Hiring a Property Manager allows you to enjoy all the things you love doing with very minimal effort. You can even get to invest in properties located in another location and don’t have to worry about anything as they have it all covered for you. A good property management company makes your investment opportunities limitless.