Real estate is no doubt one of the best ways to build wealth in this country. Many individuals purchase properties to rent or become “accidental landlords” after upsizing to a different home and deciding to rent their old home rather than sell. At a small scale, it is something that anyone can do on their spare time, to supplement their income.
At a certain point however, the challenges of property management start to take a toll on the part-time investor who keeps his/her day job. The constant calls from tenants, the need to collect rent from those tenants that pay late, maintenance issues, etc., all can become burdensome to those that do not have the proper systems in place to streamline the management process. This is why it may be wise to decide, at a certain point, to consider hiring a professional property management company.
Below are five (5) reasons to hire a property manager, so that you can begin to enjoy your passive income and get back to the things that you are passionate about.
Collecting rents can become a major burden to the average investor. Chasing down tenants that are difficult payers, managing the finances and accounting of a rental property, all are time consuming and difficult for the part-time investor to keep up with. A professional property manager will have systems in place to collect rents online and automate the process. Property management software makes it easy for tenants to log in, pay their rents, pull reports, and manage their payments. The softwares also have automated late fee processing for late payers and notifications to tenants when their rent is due, which streamlines the collections process.
Accounting & Financial Reporting
A professional property manager will handle all the accounting and bookkeeping for your rentals and provide you with a monthly statement detailing every transaction (payment, maintenance expense, etc.). This offers a level of transparency to both the property owners and tenants to ensure that all the finances are being processed correctly. It will also be easier on the property owner during tax time, to just be able to forward their Annual Statement to their CPA for tax return filing.
There is nothing worse than a problematic tenant. A professional property management company will have a process in place to screen prospective tenants and ensure that the highest quality individuals are accepted in your rental property. This includes a credit check, criminial background check, sex offender database check, and current references from previous landlords. Screening tenants properly will minimize vacancies down the line, which could be the most costly expense to any investment property.
A vacancy is one of the worst expenses any investor could experience. The turnover of a property and the leasing process could be one of the most time consuming and costly processes in the world of investing. A professional property manager will have a process in place to streamline the turnover of a property and get it rented as quickly and efficiently as possible.
Compliance with Landlord-Tenant Laws
The Landlord-Tenant Act is a dense set of laws. Most investors are unfamiliar with the intricacies of the law, which could cause major headaches down the road. Many tenants know these laws very well, and can take advantage of the ignorant landlord in situations when your rental goes bad, such as an eviction. A professional property manager is well versed in the Landlord-Tenant laws and knows how to navigate the legal process as efficiently as possible.
If you are finding yourself in a situation where managing your investment property is beginning to take a toll, please consider hiring a property manager. We are here if you need us. Just give us a call at (786) 758-3100 to discuss what services we can offer you.