Property Management for Rental Property Investors
Anyone who tells you that rental properties provide passive income has clearly never been a landlord. Between regular maintenance, emergency repairs, texts from tenants, HOA compliance, and financials, there’s plenty to keep you busy. It doesn’t matter if property investment is your side hustle or you have a portfolio a hundred units strong, the demands can easily become overwhelming. Luckily, there is somewhere to turn when you feel like you’re drowning in voicemails and untrimmed hedges: professional property management.
Property management companies alleviate the day-to-day pressures of landlording and help your portfolio reach its potential. As one of the nation’s leading property management providers since 2008, we at Evernest have seen firsthand how freedom from the daily grind and access to professional resources have enabled our clients to level up their businesses and focus on what matters. Below, we’ve shared some of our insights and tips to give you an understanding of how professional management can help you achieve your goals in investment and beyond.
Reasons to Hire an Investment Property Manager
The advantages of working with a property management company are numerous and multi-layered. Not only do property managers handle mundane tasks and day-to-day hassles, they provide access to a wealth of experience, tools, and resources.
Truthfully, we could go on and on about the benefits that landlords enjoy when they have professional management in their corner. Some highlights include:
- Time and cost savings
- Tenant satisfaction and reduced turnover
- Improved maintenance
- Professional tools
- Streamlined business processes
- Better record-keeping and compliance
- Relationships with vetted experts and service providers
- Market knowledge and strategic insight
It’s easy to understand how extra pairs of hands and eyeballs come in handy when looking after rental properties, and when most landlords first turn to property managers that is mainly what they’re after. Landlords who take advantage of the full spectrum of offerings, however, discover that property management allows them to really take their investment portfolios to new heights.
Tips for Working With Property Management Companies
How can you make sure that you reap all the benefits of working with professional management? Here are our top tips:
- Leave the boring tasks to them
Property managers provide a litany of services designed to take day-to-day landlord tasks off your plate. These services include handling rent collection, tenant communications, repairs, and regular maintenance. If you’re busy with a separate career, family, or lots of properties, having someone else to drive out and inspect roofs or field late-night calls about plumbing disasters can feel like the weight of the world being lifted from your shoulders.
Not only is it a massive relief to have fewer mundane tasks to worry about, passing them off to seasoned pros can help keep your expenses in check. Experienced property managers come with streamlined processes for collecting rent, a list of trusted contractors, and maintenance checklists forged by years of experience. Keeping books tidy and buildings ship-shape is a great way to cut down on the sort of financial mishaps and big ticket repairs that are harder to avoid when you have to juggle everything yourself.
- Let them deal with tenants
Finding and keeping good tenants is everything when it comes to rentals, but it’s not always straightforward. Fortunately, property management companies deal with every stage of the tenant process. Starting with marketing, they’ll help you put your best foot forward to prospective renters. They’ll see to it that you have quality photos and ads in all the right places, plus take care of showings. They can also conduct background checks to ensure that applicants meet affordability thresholds and will be respectful occupants and neighbors.
Once a lease is signed, property managers handle communication and deal with tenant requests, questions, and concerns. They foster positive tenant relationships by being professional and responsive, and keeping buildings in good repair. Tenants tend to re-sign their leases when they feel that the property they live in is cared for, that problems will be fixed when they arise, and that they’re treated with respect. Satisfied tenants mean fewer vacancies and fewer worries about overhead and lost rental income.
- Take advantage of their tech and contacts
If you’re a solo investor, chances are that tons of state-of-the-art property management software isn’t in your budget. Property management companies, however, often utilize a whole slew of the latest tech in order to provide their clients with the best possible service. This can include online portals where tenants pay rent and log maintenance requests, accounting software, tenant screening software, and more. Systems like these can result in big time savings, better compliance, and better organization.
Investors can also benefit from a property manager’s network of vetted contractors, legal experts, tax advisors, and so on. If you’ve never had to replace a roof before, you may not know a reputable roofer when the time comes. A property manager, on the other hand, is sure to have a guy who can do the job. If you’ve got a question about eviction statutes, they’ll know a lawyer you can call. When you’re out of your depth the contact info of a professional you can count on is priceless, and you can bet a property manager will have it.
- Share your goals and pick their brains
No matter what your goals are as an investor, property managers are great resources when it comes to strategy and advice. Their diverse experience working with clients across the spectrum– from folks renting out single houses to investors with dozens of properties– means they have unique insight into what works (and doesn’t work) for investors who want to step up. They can use that perspective to help you create a plan and make informed decisions when it comes to acquiring new properties, liquidating assets, utilizing tax deferrals, and more.
Likewise, be sure to take advantage of their specialized local knowledge. Having boots on the ground at rentals all over town means they have the latest inside scoop about what’s happening in the local market and where things are headed. This is especially valuable if you’re located out of state or are newer to investing as they can speak to property values and rental demand in different neighborhoods and alert you to factors like school districts or nearby construction that may affect them. They’ll also be well versed in local zoning regulations and landlord-tenant laws.
Conclusion
Professional property management is often the key that unlocks the next level in an investor’s career. By taking away daily distractions and creating cleaner, tighter business operations, they free their clients up to focus on their goals and dream bigger. Plus, their wealth of knowledge and strategic insight means clients can make better informed decisions and act with greater confidence.
If you’d like to learn more about how Evernest can help your business, sign up for our free rental analysis or speak to an agent in your city.
