Even the best property management companies could not have foreseen the Covid-19 pandemic. It caused one of the most severe housing crises ever seen in the U.S.—but that’s not the only type of crisis that can negatively impact rental income and cash flow for investors.
From the costly effects of difficult renters to natural disasters and other unexpected property damage, real estate investors need the proper protections in place to minimize risk and avoid significant income loss. Partnering with a property manager is one of the best ways to protect your properties and income, and here’s how!
1. Hiring a Property Manager Helps Investors Prepare Before a Crisis Hits
The saying, “prevention is better than the cure,” doesn’t just apply to your health. It also applies to your real estate investment business.
As a property owner, you are responsible for the maintenance of your property. That also means you must act to ensure the safety of your tenants to a certain degree.
By partnering with the top property management companies offers you, you have seasoned experts to set your property up to keep renters safe, develop airtight lease agreements, and put a crisis plan in place to handle any emergency that can affect residents and rentals. With our processes and industry knowledge, we are prepared for almost anything that nature (or renters) can throw your way.
Having the right experts in place before a crisis hits is an invaluable tool to maintain consistent income and recover faster when things don’t go according to plan.
2. Property Managers Have a Plan When Renters Who Don’t Pay The Rent
While you have no way of foreseeing economic problems that can affect a renter’s ability to pay the rent, you can reduce the risks of being a real estate investor. Whether a crisis like Covid impacts income for families or a renter simply stops paying the rent for other reasons, a property manager already has the resources investors need to collect the rent.
The right property managers offer rental income collection and tenant screening services. With a thorough screening process, investors reduce the risk of placing bad residents who refuse to pay the rent (on time or ever). If you don’t have the time or resources to do background checks on potential renters, a property manager handles it for you!
Starting with quality renters improves rent collection rates, but when the economy suffers—as we saw with Covid—even excellent renters can struggle to make their monthly payments. The best property management companies already have a plan in place to work with renters on payment plans and other options to keep the rent coming to protect your cash flow while helping renters get caught up.
In a worst-case scenario, your property manager can even help with the legal procedure for eviction when moratoriums aren’t in play. While eviction should always be a last resort, sometimes it becomes a necessary way to resolve rent nonpayment situations.
3. Property Managers Help Mitigate Financial Losses With the Power of Communication
Even when a crisis is unavoidable, you can still take steps to mitigate your financial losses. One way to do that is by working with a property manager that has a proactive plan for communicating with renters and property owners.
If there are changes in processes concerning your rental property, a quick response communication plan helps renters feel safe and respond to process changes better. While you might not need to offer payment plans to every renter, reaching out to encourage them to contact if they’re struggling is an excellent way to build positive relationships.
What happens when disasters or other factors reduce the amount of rent you can collect from residents? The best property management companies can recommend the right landlord insurance coverage to cover rental income loss and the cost of repairs when dealing with property damage. With excellent insurance policies, investors minimize financial loss and recover faster with things go wrong.
4. Investors Have Protection Before, During, and After a Crisis
When investors partner with the best property management companies, they have protections for the investment properties before, during, and after a crisis! A property manager has the experience and resources you need to deal with any unexpected circumstance that comes your way.
Whether you’re local to Salt Lake City or you live far away from your rental properties, Reeder Asset Management is here to help keep your rentals, renters, and income safe. Our familiarity with local, state, and federal laws and our management experience help deliver peace of mind for real estate investors. If you’re ready for help before the next crisis hits—or you’re currently dealing with an unexpected situation that’s hurting your income—let’s talk about how we can help!
Surviving a crisis requires the right protection for your investment properties! Learn more when you download our free resource, “Protecting Your Investment Property: A Guide.”