The rental market in the U.S. is flourishing. It's gone up steadily from fall 2018 into summer 2019. It is up in 49 of 50 top markets with an annual 3 percent increase in the rental price.
The steady rise is attributed to low supply and steady demand because of the generally good economic climate and demographics. This makes it a fantastic time to use your property to generate income. It can even be an ideal passive income source, with little to no effort on your part, if you hire a great rental property manager.
However, what is a property manager, you ask, and why should I get one instead of just doing it myself?
To answer your questions, here are some main reasons to get decent property management. Keep reading to find out how a property manager makes sure that your income property runs easily without headaches for you. Then, find your ideal manager and sit back as your property earns.
FINDS YOU GREAT TENANTS IN A TIMELY FASHION
A professional property manager knows where and how to put your property on the market so it rents quickly and attracts the ideal tenants. The property manager is aware of what rentals are going for so yours can be listed at the right price, not too high and not too low.
This makes it aggressive so it rents quickly and gets you what you should be getting. Your property managers know how to word the ad and will present your place so you don't have to.
Then -- and this gets a huge hoorah -- your property manager displays potential renters. Thanks to loads of expertise, your property manager knows what to look for in a good, reliable tenant. A background and credit check are usually done to make sure there're no rent payment delinquencies, evictions, financial issues, bad credit, or other issues, including criminal records.
Your property manager looks at financial statements and income to ensure that your new tenant can comfortably pay the rent. She or he also knows how to ask all the appropriate questions to find an honest, trustworthy, reliable person.
Your property manager then creates an ironclad rental agreement for your new tenant to sign that covers all the bases and protects you on all fronts.
All of these experienced measures are done to avoid getting a trouble tenant in your place that can cost you unnecessary time and money. The cost to you can be high if rent is delinquent or not paid at all or if evictions and lawsuits become necessary, as well as repairs if the tenant trashes your place.
COLLECTS THE RENT
Superior property management consists of timely rent collection because your rental property management company gets paid a percentage of what you take in.
If a tenant doesn't pay on time, they'll charge a late fee, and if rent goes unpaid or is too consistently late, they can gently nudge until it's paid or issue an eviction notice and follow it through.
KEEPS TENANTS HAPPY
Your property manager understands the ins and outs of what tenants expect from their landlords and which expectations are realistic. When an issue arises, your property manager will take the bull by the horns and solve the problem effectively, efficiently, and at the lowest cost to you, all while making sure your tenant stays happy.
Your property manager will know exactly how to fix problems (believe plumbing or HVAC) and whom to call so you don't waste time investigating solutions and vetting people to hire for the job.
Your property manager also does all the coordination of getting in the professionals to fix issues. She or he'll call the reliable plumber for the low pressure in the sink or call the handyman to caulk the bathtub, for example.
KEEPS GOOD TENANTS IN
When you get great tenants, you want them to stay for as long as possible. A good property manager knows how to meet your tenant's expectations in a realistic manner.
If they ask for too much, they'll be reigned in and informed about their rights as renters and realistic expectations.
COST-EFFICIENT REPAIRS AND MAINTENANCE
Thanks to a property management company's expertise, they're very likely to have a completely stable to professionals and crews they work with and trust.
Your property manager will easily pinpoint the issue and understand how to fix it. They'll know whom to call and they'll have an established relationship with that person. For example, they'll know when to call the handyman within the plumber that can save you in hourly rates.
The professional is very likely to be spent in doing a good job and keep the manager informed. Your manager also will get good/fair work rates overall and make sure the work is properly done.
Your property manager and company may get better deals on rates because they hire a professional often. All of this will save you money in the long run.
RUNS A TIGHT SHIP
Your property manager understands property laws, renters' rights, and fair-housing-for-everyone laws and laws. The company will handle any legal issues that arise with your tenant. It's a win-win-win.
Your manager will know how to avoid lawsuits and guide you if something does happen, as they can do all the work that deals with attorneys, including hiring one.
They probably already have one they love to use.
KEEPS YOU HEADACHE FREE
Your manager will oversee and coordinate everything for you so that you don't have to worry about anything.
Lean heavy into your property manager. The company has your back. They definitely want to serve you. If you have questions or want advice, ask. Let them teach you the ins and outs of owning an investment property. But let them do all the heavy lifting. In fact, let them do all the lifting.
HIRE THE CORRECT RENTAL PROPERTY MANAGER FOR YOU
Now that you know how a great rental property manager can make it so much easier, efficient, and cost-effective to rent out your property, you're ready to go.