Investing in rental properties, growing your business, and trying to play landlord can quickly become overwhelming and exhausting. Before you know it, you may find yourself missing out on quality time spent with family and friends, as a result of trying to juggle so many things at once. This will only be further intensified if you work another job on top of managing your existing investment properties. While real estate can be a great investment, if you find that you're being spread too thin, property management could be the right solution. If you are still on the fence and aren't sure if you should continue trying to run a one person show or outsource to a property management company, consider the top 12 most convincing reasons to utilize professional property management for your rental business!
1.) Reduced Vacancies- Property managers can help fill vacancies more quickly by utilizing their training and experience in marketing and advertising properties. They will also employ a stringent screening process for all potential tenants to ensure that you are only leasing to the most reliable and responsible renters. This helps reduce vacancies and turnover, so you can keep your rental income steady. Moreover, with quality tenants in your properties, you will face less damage and legal issues down the road, saving you even more in the long run.
2.) Improved Rental Rates- Professional property managers are experts in the market and know how to set rental rates that will maximize returns. They have access to data and analytics that help them determine what the average going rate is for a given area, while also taking into consideration any unique features or amenities your rental property possesses. Thus, you can rest assured that property rates will be set competitively, so you can both maximize profits and offer a fair rate for your tenants.
3.) Lower Costs & Higher Profits- Professional property management companies are able to manage properties more efficiently than the average individual. With their extensive experience, they can often find ways to save money on maintenance and repairs. Additionally, professional property managers have access to discounted rates from vendors, as well as bulk purchasing power for items such as paint and cleaning supplies. All of these savings add up, helping you to increase profits and lower costs.
4.) Reduced Legal Risks- Property management companies are well versed in all local, state, and federal laws that impact rental property ownership. They can make sure that everything at your property is up to code and compliant with legal requirements. This will help reduce potential liabilities and ensure that your tenants know their rights and responsibilities as far as the lease agreement is concerned, helping you to avoid headaches down the line.
5.) More Time & Less Stress- By outsourcing your rental property management to a professional, you will have more time to focus on other aspects of your business. You can also rest assured that all of the day-to-day tasks associated with managing a rental property are being handled by an experienced and knowledgeable team. No longer will you need to worry about tenant complaints, maintenance requests, or even collecting rent each month. Instead, you can focus your time on growing your business and spending time with those you love.
6.) Proactive Maintenance & Repair- Professional property managers are well adept at recognizing and responding to potential repair issues before they become bigger problems. They are also able to coordinate with vendors to find the best, most cost-effective solutions for any maintenance or repair needs that may arise. This proactive approach will help you save money in the long run as it prevents small issues from turning into more serious problems that could cost you significantly more to repair down the line.
7.) Increased Tenant Retention- Professional property managers understand the value of tenant retention and are well versed in how to achieve it. From offering competitive rental rates to providing exemplary customer service, professional property management companies can help you increase tenant retention and subsequently reduce the costs associated with frequent turnover.
8.) Improved Tax Benefits- Professional property managers will be able to provide you with advice and assistance when it comes to maximizing your tax benefits. They understand the intricacies of rental income taxes and can help ensure that you are taking advantage of all applicable deductions, exemptions, and credits available to further maximize your profits.
9.) Peace Of Mind- Having a professional property management company at the helm will give you peace of mind knowing that your rental business is being managed by experienced professionals. You can rest assured that all aspects of your rental business are being taken care of in a competent and efficient manner. Henceforth, you can utilize your time doing the things that matter most to you, instead of fielding repair requests during every free moment you have.
10.) Increased Security- Professional property managers understand the importance of security when it comes to rental properties. They will be able to assist you in installing necessary security measures such as locks, cameras, and alarm systems to help ensure the safety of your tenants and the integrity of your properties. This in turn will provide you with greater peace of mind and encourage better tenant retention.
11.) Easier Accounting & Paperwork- Property management companies have the necessary software and resources to help streamline the accounting and paperwork associated with running a rental business. From collecting rent to handling tenant applications, they can take care of the most tedious tasks and ensure that everything is accurate and up to date. This will also help free up more of your precious time so that you can focus on more important aspects of running/growing your business.
12.) Avoid The Dirty Work- With a professional property management company in charge, you won't be tasked with handling unpleasant legal issues, such as tenant disputes and evictions. Instead, you can enjoy a hands-off approach and allow the professionals to handle this unpleasant but sometimes necessary aspect of running a rental business.
In conclusion, the benefits of utilizing professional property management for the management of your rental business are numerous. While most of us would like to think we can do it all, the reality is that no man or woman can do everything well. With this in mind, if you are increasingly finding it more and more difficult to meet the demands associated with your personal and professional life, it may be time to consider if professional property management could be the natural next step in helping your rental business to flourish. After learning some of the most powerful reasons to choose property management, there is only one question left to ask yourself: could this be the right move for me and my business?
