Why Choosing The Right Property Manager is Key
Asset management is one of the most important aspects when it comes to owning investment properties. Although the upfront due diligence of underwriting and building a business plan is crucial, the only way all of that comes to fruition is by having operators that can execute it over the life of the investment. This is where asset management comes into the picture. With there being a large list of components regarding asset management, we will drill down to just one for this blog. The component is hiring a professional property manager. Below we will walk through some of the main reasons why choosing the right property manager can help take your property to the next level. Leasing One of the main reasons the right property manager is crucial is because they will take care of leasing units for you. This is so impactful because they take on full responsibility of marketing and showing the units to potential tenants while you, the owner, get to take the back seat. If you have hired the right team, then they will be able to fill empty units as well as keep existing tenants in place while also taking rents up. This will help reduce vacancy and increase income which your investors will very much appreciate since this will boost cashflow and overall returns. Reducing Expenses Not only does the property manager help in reducing vacancy and increasing income, but they also work to decrease operating expenses. For example, let’s say that they notice that the water bills, that the owner pays, have been on the rise the past few months. After further investigating, they find that there is a leak causing this rise in cost. This is a sign of a wonderful property manager because it both illustrates appropriate attention to the Profit and Loss Statement and having the owner’s best interest in mind. Now that they know about the leak, they may proceed with multiple quotes to be sure that they are not overpaying for the repair. Another way that a solid manager could go about this is by leveraging contractors that they have relationships with. Most times this will result in reduced charges which is a great way to aid in reducing operating expenses. Maintenance & Repairs When it comes to clogged toilets, HVAC issues, or unit turnovers the property manager will take care of it all. As mentioned above, they will be the ones that work with the contractors to address any issues that may arise. This is a wonderful thing because it makes owning real estate so much less stressful. Again, a great property manager will make sure to address each request in both a cost and time-efficient manner. It is important to add that they will also help with turning over units. This occurs when a tenant moves out of a unit and it now needs to be prepped for the next tenant. Most times this requires fresh paint, washing the floors, or cleaning the carpets. With a solid property manager, all of this will be handled quickly and professionally. Handle Tenants One of the big ones is that property managers will handle all tenant issues or requests. This may be complaints about the pool, requests for more gym equipment, or having to address noisy residents. Almost everything that you can think of that would cause the owner a headache is first addressed by the property manager. The best part is that a professional manager will have experience with this and will know how to handle all sorts of situations. They will have systems, policies, and procedures in place to make sure that the tenants are heard and experience quality service. Conclusion Hiring the right property manager will be a very helpful addition to your team and one that will do wonders for the property. Again, asset management is where the business plan really comes to life and investors realize whether they made the right decision. Having a savvy property manager to assist will only help in executing the business plan and the underwriting you had set for your property. So, go out, research diligently, and hire a property manager. Your investors will thank you!