Today we’re talking about property management. What is property management, who are property managers, what do property managers do, and why you should care!
I hope this blog teaches you something about one of the major components of real estate investing! Often property managers are overlooked and not appreciated for the value they provide to the real estate investing machine. Many real estate professionals know, property management is a thankless job but man is it important! Every property needs someone to oversee it as problems come up and things just happen! So if you’re not managing your own properties, then who will?
What is Property Management?
Property management is the operation, control, maintenance, and oversight of real estate and physical property. This can include residential, commercial, and vacant land real estate. So, if you’re a property manager, who are you and what are you doing to actually “manage” real estate? What does that all entail? Properties just sit there right, there can’t be that much to do?
Who Are Property Managers & What Do They Do?
I actually got my start in real estate as a property manager in college. I managed my apartment building and leased and managed other apartments in the area. Therefore, property managers are people who basically act as a landlord without actually owning the property. This allows for real estate investors to go out and do what they do best. That is, find more real estate to invest in! It becomes difficult for an investor to scale a portfolio and build wealth if he or she is always fixing leaky sinks and responding to emergency calls in the middle of the night from tenants.
Other Important Roles
Other roles that property managers may fulfill are to:
- Advertise and fill vacancies in rental units
- Negotiate and enforce leases with tenants
- Maintain and secure premises
- Establish rental rates by looking at comparable rental units
- Collecting and managing security deposits
- Collecting rents, paying bills, and budgeting
- Resolving tenant complaints, enforcing rules of occupancy, planning renovations, and contracting with landscaping and snow removal services
Why Should You Care About Property Managers?
So the reason you should care about property managers is because the management of a property can make or break a deal. If a property manager isn’t filling a property and the property is sitting vacant, you’re losing money every month! So when a property manager is not responding to tenant complaints and maintaining a safe and habitable property, tenants will move out. Similarly, it will cost you money in vacancy and turnover costs like cleaning, maintenance, and marketing to new tenants!
How Rent To Retirement Can Help
Here at Rent to Retirement, we have vetted a network of property managers that work in all of our markets and are ready to manage your properties from day one. We’ve already done the interviews, research, and negotiating for you. Set up a call with one of investment counselors to find out more about our property management partners in the markets we work in. Find yourself a great property manager and your portfolio will be running like a well oiled machine in no time.