How Professional Property Management Helps Real Estate Investors
- Miles Chandler
- Jan 2
- 4 min read
Real Estate Enthusiasts can struggle with seeing the value and need of a professional property management company. Heres what they are missing out on.
Rent Market Analysis
When coming up with how to price your rental property on the public domain, it's important that is priced fair. Many a times properties can be listed for rent prices that aren't realistic whether it is to high, or to low.
If too high and a property can sit on the live market can become stagnant.
Or vice versa if you under price, you can lose on potential income.
When coming up with pricing its important to work with a professional property management company that has the tools and resources to value what the potential of your property.
There are many factors to a rent market analysis like the amenities the community offers, whats included with the listing and the property, the level of finishes, what has recently rented and what the current live market looks like.
Screening Applicants
It is VERY important to make sure that whoever you are placing in your rental property are qualified applicants. Nothing is worse then placing someone who misses rent payments, or doesn't take care of the property.
This is why checking references, income, credit, eviction, and criminal (depending on state) is vital for smooth operations.
A good professional property management company will have the reasources and put the time into checking all of these items. Looking for red flags with perspective tenants, and leveraging in negotiations is so crucial and commonly missed with DIY Real Estate Investors/Landlords.
Professional Property Management Inspections
There are several inspections that are key to ensure that your property is being notated as it should. At Zenith Degree property management we have several key inspections that are done.
INSPECTION | FREQUENCY | DETAILS |
Tenant Make Ready | Once (When signed) | This inspection is to make sure that the property is tenant ready. All lightbulbs work, batteries have been replaced in smoke detectors, door stoppers are installed and functioning. |
Move In | Once (Tenant Moves In) | This is almost identical to the tenant make ready inspection, the main difference is that the property should have been fixed and is ready for the tenant. This is also vital to notate the property exactly as it is prior to tenancy. |
Quarterly | 4 Times a year | A brief check to make sure that the tenant is taking well care of the property. Here we notate how the tenant is taking care of the property and look for any areas where they may be going into default. |
Move Out | Once (Tenant Moves Out) | A final thorough inspection of how the tenant left the property. After inspection this report will be reviewed with the move in inspection to focus on any areas where there may be damages. |
Strong Lease Language and Negotiating
In this day and age with the internet there are many resources to help Landlords with lease language. However, these leases do not come from experience. When using a professional property management company, their leases usually have language in there to protect the Owner, as well as the tenant, due to issues that have been previously addresses in operations.
When a tenant is late on rent payment, what date can you start evictions? Can a tenant use security deposit for last months rent? All valid questions that a management company will have answers due to experience.
Certain states have nuisances and its important that you abide by state laws and local governances when discussing eviction proceedings and security deposits.
Rent Collection
What does it look like when collecting rent from tenants? Property Management companies like Zenith Degree have a setup system where tenants can pay online through a portal, or take online payments preventing snail mail and checks being lost or having to be delivered.
Maintenance Requests
A lot of owners travel and have other professions that they focus on. Being always available for that late night call of a toilet not working, or HVAC not cooling the home can be a large ask.
With property managers, good ones at that, you can rely on a phone to always be answered whenever something isn't working so that the tenants can be taken care of.
Also, its part of the Property Managers job whenever a maintenance item arises to check what caused the issue. Was this a normal wear and tear, or did the tenants cause the issue? If so, who's responsible?
FAQs
What is a common price for management fees with a property management company?
This varies depending on where the company is, size of proeprty, and so on. Most commonly property management companies charge anywhere from 10-13%
What does a property management company do?
In short, a property management company acts as a fiduciary of an owner’s real estate investment, protecting the asset, managing the financials, and driving long term value.
Why should I hire a property management company when I can do it myself?
If you are someone that has a profession outside of real estate and dont have the time, resources, or knowledge of how property management works, its best you seek out professional help.
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