If you are a real estate business owner or landlord, then you must have thought if your business really needs a property manager. When you are just starting a new real estate business, you may cut costs and save up by acting as your own property manager. But property management is an expert task that needs proper training and experience to get the job done properly. Managing your own property also has legal implications, which can be different for each state. A property manager also has liabilities like keeping the place habitable and maintaining it.
A professional property manager brings a lot to the table. A good property manager will also use a selection of technology in project management to streamline their work. The right technology selection speeds up work and reduces your headache of managing multiple properties and an endless number of tasks.
As a real estate business, if your goal is an expansion and increased profit margins, then you can not do without a property manager. But is it time for you to hire a property manager? This article will try to figure out all the signs to identify if your business needs a property manager. We will also help you figure out if a property manager will be good for you. Read on to find out more.
Signs to identify that your property needs a manager
Look out for these 5 signs to know if it's time to start looking for a property manager for your real estate business. Know these signs inside out to avoid pitfalls and reduce your stress.
You lack expertise in property management
There are different kinds of properties in real estate, retail, restaurants, warehouses, malls, residential, multi-family homes, affordable housing and much more. Every piece of this real estate needs a different level of expertise to handle the clients and manage the property. Every property has different legal, tax, insurance, and other compliances. Do you see yourself struggling to figure this out? Then the main problem here is that you lack the basic training and expertise in different types of property management.
If you lack expertise, you can end up with a lot of bigger issues. Some of them are,
Failing to understand and follow all Fair Housing Laws
Failing to inspect the rental to obtain a rental license
Not adhering to all habitability standards and building codes
Obtaining a Lead Certificate or adhering to other environmental guidelines
Not knowing security deposit limits and return guidelines
Too many properties for you to juggle
All real estate properties have some common requirements that come under the property manager's purview. These mainly include,
Addressing tenant complaints
Rent collection
Assessing late fees and sending notices
Paying taxes and insurance and reporting
Coordinating maintenance and repairs
Compliances and legal items
Property inspections and turnover
Leasing and marketing vacant units
Applicant screening
Doing all of these tasks for one property is hard enough; imagine adding multiple properties into this mix. An inexperienced person is bound to struggle.
Finding good tenants is becoming a struggle
Identity thefts and crimes are very common in America. Reports say more than 15 million people experience identity theft issues every year. If you do not do a proper screening, getting stuck with bad tenants is very easy. This can lead to overdue rents, damage to property or frequent tenant turnover.
The landlord stays out of town
Are you a real estate business owner who has many properties under them whose landlords stay out of town? But you hate public interaction? This can be a roadblock, and a lack of communication with tenants can lead to a lot of lease violations and unhappy customers.
You are not able to pace up sales
Do you keep wondering about expanding your real estate portfolio? If property management is not your forte, then you will not know how to drive sales, sell each house's X factor, and increase business revenue. But managing all of it seems overwhelming; hence you do not pace up sales.
Why hire a dedicated property manager?
Hiring a dedicated property manager for your real estate portfolio is the best way to help your business grow.
Reduction in tenant turnover
Tenant screening is part of the property manager's job profile. They also ensure that you always get good tenants at your property. This helps reduce tenant turnover and stops burning a hole in your pocket.
You do not have to do client interactions
Even if you are not in favor of direct client interaction yourself, you can not stop doing them. Instead, your property manager can do that for you. Even if the landlords stay out of town, it does not matter. Property managers can do a lot, from listening to client grievances to giving them tours of the house.
They bring training and expertise to the table
When hiring a property manager, also ensure that their area of expertise matches your portfolio and property types. This will bring a lot of experience to the table, and you will be able to customize your business approach based on different market types.
You can grow your portfolio
When you have a property manager and property management software working together for you, you can easily grow your portfolio. Your manager can do the interaction and personal relation-building tasks. Some of the tasks like rent collection, making CAM reports, tenant screening, and other tasks can be automated.
Is it time to hire a property manager? Does your real estate business need it?
If you plan to grow your business and flourish, then it is time to hire a property manager. But along with that, you need to integrate the latest technology selection in property management to automate some tasks and speed up the business process. A good combination of a human property manager and good tech is the key to success in this industry. That is why reports say that the property management software market is all set to reach $2.70 Billion by 2030.
Do you have suggestions on which property management software would work best for your portfolio? Or do you need to develop strategy and leadership to figure out the property manager hiring process? We are here to help you with all things real estate. Talk to us for more!