Do you like the idea of profiting from multiple rental properties, but the thought of unexpected tenant phone calls makes you apprehensive? Although rental investments offer an appealing opportunity for financial freedom, they often take an unforeseen toll on your personal time when repairs are needed, or tenant disputes arise. However, by investing in a property manager, you can avoid this toll and still profit from your passive rental income.
What Property Managers Do
Property managers are real estate professionals who are well-equipped to handle tenant situations and locally manage properties, giving you the freedom to travel, live out-of-state, or dedicate your time to another job. They are the point of contact for your tenants, taking you out of the equation for calls. Specifically, they will help with these time-consuming tasks:
- Collecting rent and deposits
- Handling disputes
- Organizing repairs
- Performing post-occupancy inspections
- Scheduling regular maintenance
- Processing tenant applications
- Handling evictions diplomatically
Unfortunately, completing these common tasks requires a lot of work and direct contact with tenants. A property manager can act as a professional contact between you and the tenant, lessening the burden for you. With a property manager, collecting rent and conducting other related business is a routine transaction rather than a hassle.
Having a property manager is especially worth the cost when you have more than three units to manage. The more properties you have, the more you’ll have to deal with repairs, leases, disputes, and much more. Having someone to help you with these tasks will make operations more efficient, keep tenants happy, and give you the peace of mind that everything is running smoothly.
How You Benefit
Your investment, whether a single family home or condo, will need a property manager to keep tenants accountable and the place in good shape. No matter if you are local or have moved away from your investment property, the property will be kept under the watchful eye of a local property manager who cares.
Property managers can actively process applications and adhere to the Fair Housing Act when selecting the next qualified tenant, ensuring you are in good legal standing throughout the tenant selection process. Your property manager will also be familiar with drafting and ratifying leases, streamlining the leasing process.
Another benefit is a higher tenant retention rate. Residents like to rent properties that are well-kept, and a property manager ensures that broken appliances or other needs are addressed expediently and courteously.
What’s the Cost?
How much you pay for this service depends on the property management company you choose. On average, property managers receive 4-10% of the monthly rent as commission. If you desire a different rate, you can negotiate those terms in the property management agreement. In our opinion, the standard commission is well worth the peace of mind and freedom you gain.
From saving you time and inconvenience to managing your non-local properties to even helping you avoid legal trouble, a property manager is a wise investment.
To learn about the property management services that Elika provides Read more.