Do you own an investment property that you are renting and are you currently handling all the homeownership duties?

Thinking of investing in rental properties, but not sure you are up to the task of owning?

If you answered yes to any of those questions, whether you are holding on to or considering investing in a single family rental (SFR), duplex or triplex, you should consider hiring a professional property management company to take the work off of you. . .

Let’s take a look at what property management is, what a professional management company handles, and how to decide not only if it’s time to hire one, but how to hire the right property management firm.

What is property management?

Let’s start by understanding what a property management company does and doesn’t do. There are several critical tasks that a property manager can help you with.

Set the appropriate rental rate: You can always calculate this by looking through the classifieds, but a good property management company actually does extensive market research to establish a rental price for your property. This ensures that you have a great balance between maximizing your monthly income and maintaining a low vacancy rate.

Rent collection: One of the hardest aspects of owning is collecting rent. Property management companies have efficient and proven systems that will do a great job of collecting rent and keeping payments on time.

Marketing and advertising of your rental unit: When vacancies occur, you want the rental unit to be filled as quickly as possible. A professional property management firm has experience helping you market your property at the right rate to make sure someone moves in quickly.

Find and manage tenants: The property management company will take care of finding and managing tenants for you. This means screening new tenants for credit and criminal background checks, gathering references, and getting the lease signed. Once the home is occupied, handling routine and emergency maintenance and inspections are part of what a professional management company will do for you.

Management of relationships with contractors and other suppliers: Do you have deep relationships with all the maintenance workers, tradesmen, contractors, vendors, and vendors needed to properly manage your rental? Probably not. But a property management company does it and can get you the best job at the best price, while handling the burden of overseeing the necessary maintenance projects for you.

Keep it in compliance with the laws. Housing regulations and property laws are complicated and confusing when renting and maintaining your rental property. These can include local, state, and federal regulations, along with fair housing regulations like the Americans with Disabilities Act. A property manager can keep you out of hot water by keeping your property up to date and complying with all these regulations.

Allowing you to invest from afar: If you have moved to a place where investing in rental units is pointless, you might think that investing in SFR or other rental properties is not possible. With a good property management company on your side, you won’t be so limited in your investment opportunities.

I only have one property; so why do I need a property manager?

If simply reading through all the tasks a property manager can do for you isn’t compelling enough, consider the following: Do you want to be able to go on vacation without interruptions? Do you really enjoy the 3:30 AM backup plumbing phone calls?

You most likely want the freedom to get out of town on vacation or just spend uninterrupted time with family on vacation. You don’t like the task of dealing with emergency maintenance tasks in the middle of the night, and you’re probably dreading the idea of ​​trying to find a good tenant when your existing tenants move in.

Even if you only have a single investment property that you are renting, you can benefit greatly from hiring a property management service. They have decades of experience that would cost you a lot to match and can ensure that your property remains immaculate while maximizing your profits.

Okay, I’m convinced, but how do I know who to hire?

The best way to learn about quality management companies is based on the experience of others. If you are local to your rental property, attend regional real estate investment association meetings to get recommendations from other owners.

You want to make sure you find out how many units the company manages and how many employees they have doing the work. A trained employee with the right tools and proven processes can successfully manage 30-40 units, as long as they don’t play as an accountant too.

When interviewing different qualified property management firms, here are the questions you should get answers to:

• How much? Generally, the monthly fee for managing the property is between eight and twelve percent, plus expenses. Remember that you get what you pay for, so it is important to balance cost and services.
• How well do they communicate? You want someone who uses email, but still answers the phone. If you don’t get a response in a timely manner, it’s time to walk somewhere else.
• How easily can I terminate the contract? If things work out, what does it take to terminate your contract? Make sure you know this up front, along with the penalties.
• What experience do you have with Section 8? This can be extremely important, as Section 8 homes and renters are great income opportunities. Make sure they have the proper experience with such properties.

If you do your research, you can easily find a reputable company to handle your rental investments for you. This will free you up to enjoy the rewards of your investment without all the hassle.