What is Property Management?
What is Property Management?
For every investor, their rental properties can be a source of healthy passive income. Think about it: you buy a house, rent it out to a third party, and get passive income every month. That sounds like a sweet deal, right? Unfortunately, it’s not that simple for most people. No matter the size of the investment portfolio, managing a rental property takes time and commitment. You’ll have to stay on top of general maintenance issues, advertise the listing to potential tenants, and then stay in touch with them once they’ve moved in to ensure they’re happy.
For a person who has several rental properties and a full-time job, managing a rental property can seem borderline impossible; that’s where property management can help.
Understanding Property Management
Property management is overseeing and handling the business operations of a real estate property, which a third party often does. It can be done for both commercial and residential properties. There’s a lot that goes into managing a property successfully. When the tenants are happy, the stream of passive income stays healthy. Property management is essential for several real estate investors since they have several rental properties and can’t oversee each property simultaneously. That is why they hire property managers. When an investor decides to partner up with a property manager, the heavy lifting involved in property management is no longer their responsibility.
What Are Property Managers Responsible for?
A property manager offers a wide range of real estate services. These deal with the maintenance and care of several or a single rental property. On a broader scale, a property manager’s responsibility is to ensure the investor’s investment portfolio succeeds. On a daily basis, a property manager’s responsibilities may include:
- Maintaining a positive relationship with clients and managing the eviction process when needed
- Advertising listings to attract potential clients
- Keeping a detailed record of the financial statements and preparing reports of income for the property owner
- Enforcing and then administering lease agreements
- Scheduling repairs and maintenance
- Rent collection
At a glance, you can see how many tasks a property manager must have to juggle to ensure both parties (the landowner and the tenant) stay happy. Moreover, several property managers also use property management software that automates most of their work. With help from software, managing front office operations becomes a lot easier, and property managers can balance other operations more efficiently. This way, the investor can also choose their level of involvement with the process. If they prefer to stay in the loop, they can regularly communicate with their property manager. If they have their hands tied up with other commitments, they can rest easy knowing their property manager manages their investment efficiently.
The Benefits of Property Management
While you save a lot of time by working with property managers, time saved isn’t the only benefit of property management. There are several other reasons to hire a property manager:
- Tenants usually prefer working with property managers rather than landlords since the process is usually smoother. As a result, this ultimately impacts the tenant’s view of the property. Renters who deal with a property manager usually end up leaving a good review of the property when they vacate it.
- When an investor works with a stellar property management firm, they have access to a list of seasoned contractors. These contacts work in the landowner’s favor, and it helps them save on future maintenance costs on other properties. Moreover, contractors can come to the property owner with recommendations which are invaluable as well.
- A property manager looks after rental properties for their living: it’s their job. This means they have an eye for a good tenant and consider several intricacies of the process that you can’t even think of.
A great property management company is worth its weight in gold. In the long run, property managers can help you save more than what they charge you. This is a win-win-win: happy tenants, content property managers, and a satisfied investor.
