Investing in property seems simple. Purchase a property, rent it out, and collect passive income. However, any investor who has also taken on the role of landlord knows how time-consuming at frustrating it can be to manage a property well without help. While obtaining a property initially may be complex, managing it once its purchased is a new level of difficult. Investors may shy away from hiring a property manager due to the cost associated. After all, real estate investments are all about making money. Most property managers charge a rate of 10-15%, which means less income in your pocket at the end of the year. However, it is important to consider the benefits of hiring a property manager.
A great property management company doesn’t just collect rent. They also build relationship with your tenants. They communicate effectively, listen carefully to complaints and requests and take appropriate action. Experienced property managers know how to diffuse negative situations, resolve conflicts, and do the hard stuff for you so you don’t have to. Excellent property managers can distinguish whether an owner should be involved, or if the situation can be handled in-house. A great manager will always communicate with you appropriately without weighing you down with unnecessary drama. After all, a happy tenant leads directly to a happy owner.
Experienced property managements understand the importance of spending extra time and effort screening potential tenants. Background checks and credit checks are standard, but a great property manager will spend time interviewing previous landlords and the tenants themselves to ensure that they will be a good fit. In the long run, this time investment is worth it for the property manager and for you, the owner. A good tenant means you’re less likely to have to deal with late rent, broken contracts, criminal activity, and damage. An experienced property manager can pick up on details that aren’t listed on a background check. They will also comply with all laws to ensure that they are never discriminating in any way.
When you’re busy, it may be difficult to find time to properly vet your potential tenants in a timely way. But by hiring a property manager, you can rest assured that the work is being done. Coeur d’Alene Real Estate Investment and Property Management has never had a vacant property for more than two weeks. In fact, in 2018, the longest a single property was vacant was 1 week. By hiring a credible property management company, you will not only have the best tenants living in your property, but they will be in your property faster. This means more rent for you that month.
This is the biggest advantage you have as an owner by hiring a good property manager. They give you the security of knowing that your property is being taken care of, rent is being collected, and your tenants are happy. This leaves you with more time to spend doing what you truly want to do, whatever that is. Whether its buying, renovating, holding, or selling good deals – you can benefit from simply having more time in your day. Let somebody you trust do the dirty work, and you will truly benefit more than you might think.