Investing in property has long been one of the most effective forms of accruing wealth. Whether we are discussing commercial warehouses, apartment buildings, or even individual residential homes, it can take a lot of effort and time to properly staff, maintain, and fill these buildings.
While many individuals will turn to property investments as a form of active income, far more often the goal is to create a passive source of wealth. In this case and for this goal, hiring a property manager may make a lot of sense.
According to a report published in 2018 by the Natural Association of Realtors, nearly 42% of all rental properties have their day-to-day operations overseen by the owner itself. Through the assistance of a rental management company, these property owners can potentially boost their profits while building a better future for their investment.
What is the Role of a Property Management Company
In the traditional rental-renter agreement, the owner of the property will interface directly with potential tenants. This includes tackling any and all repairs, advertising endeavors, and monthly rent collections. For newcomers to the field of rental property ownership, this might make some sense. Yet as the business grows, considerations for a property manager must be made.
Officially a property management team will deal directly with all prospects of the property’s ownership. This includes tackling all of the additional tasks, among others:
- Collecting and Handling Rental Payments – One of the least enjoyable aspects of owning a rental property is having to deal with rent collection. Money is intrinsically awkward to deal with and a property manager can create a professional barrier between the rental owner and rent acquisition. Professional property managers will have systems in place that are effective and convenient.
- Set Correct Rental Rates – According to a report published by Statista, roughly 27% of all Americans rent their home. In order to reach this rapidly expanding market, it is vital to have competitive rates. Property managers are trained and knowledgeable regarding market rates, allowing property owners to maximize their profit while minimizing downtime between tenants.
- Create Barrier Between Landlord & Tenant – One of the best ways that a property manager can help a property owner is by giving them a barrier between their investment and their day-to-day life. This allows property owners to remotely invest in properties, thus opening up more opportunities.
- Reduce Downtime Between Tenants – A recent report by Yardi Matrix and PropertyShark revealed that renters have become the majority of the population in major cities around the country. According to the same report, renters comprise at least 50% of the population in 82 cities, including Detroit, Irvine, and Toledo. A property management team can tap into this rising market to reduce the downtime between tenants, minimizing ownership’s exposure to lost rent.
A professional property manager will be charged with tackling a wide range of services. More than just a professional that can be relied upon, property managers are dynamic talents that can adjust to the situation before them.
Key Reasons to Consider Hiring a Property Manager
The role of a property manager is dynamic and almost always evolving. Yet one thing remains true throughout their duties, they are focused on alleviating the burden of a property owner. For many property owners, be they commercial or residential, deciding to hire a property manager can be a difficult decision. After all, how do we know when we really need a second set of hands to assist us?
Before hiring a potential property manager, consider the following points.
- I Need Help With My Tenants – The most obvious reason to consider a property manager involves direct tenant interactions. Some investors don’t mind working with their tenants while others find a property manager as the perfect professional barrier.
- I Don’t Have Enough Free Time – While property ownership sounds like a passive form of income, it rarely is. Tenants may frequently need to contact their landlord in order to discuss financial issues or maintenance issues.
- I Could Use Help With the Financial Aspects – Successful property ownership requires an understanding of the market. Property managers are uniquely suited to handle tenant relations, lease agreements, rental rates, and more.
- I Own Multiple Rental Properties – If you own or have invested in multiple rental properties, it can be hard to dedicate time to a single unit. For property owners with multiple units, a property manager can help to keep things organized, professional, and running smoothly.
Working with a property manager can be one of the defining choices that a property owner makes. in their career. As property management companies are independent contractors, they do not fall under the umbrella of an employee. This makes it easier than ever to add a professional property management to your roster to help with your rental units.
As rental rates continue to rise throughout the United States, working in the field of property investment and management is becoming increasingly profitable. To help improve your rental ownership endeavors, consider contacting the team at Strategic Properties Group, today!
Build Your Rental Business With Strategic Properties Group
Strategic Properties Group is located in Tampa where they specialize in leasing, management, and property development for both commercial and residential buildings. The team at Strategic Properties Group is pioneered by Barry Jackson, a Florida real estate professional with more than 30 years of experience in the industry.
To learn more about cutting edge property management services, contact Strategic Properties Group for a consultation!