When you acquire a new investment property, there will be many critical decisions to make that impact your success. One of them will be to manage properties on your own or work with a property management company to handle rentals and tenants for you.
Excellent property management is essential to ensuring high returns from your investment properties. So, how can property owners decide between self-managing vs. hiring property managers?
There are plenty of benefits to having a property manager look after your investments! Here are a few reasons why many investors rely on professional management services and how to choose the best property manager for your rentals!
Succeeding as a Rental Property Owner
Should you hire a property manager? It’s easy to think that operating rental properties is as simple as finding a tenant, collecting the rent, and fixing things when they break. Unfortunately, while those are important aspects of rental management, they only scratch the surface of what investors need for long-term success and excellent ROIs!
The right property managers help you set the ideal rental price to stay competitive (and generate enough income), help you find and keep good renters, tackle every maintenance and repair, and follow landlord-tenant laws. If you’re handling most of these tasks now for one or two properties, you might be able to balance rental property operations with your other work or life priorities. However, as you build a bigger portfolio, juggling these tasks across multiple rentals (successfully) can become overwhelming.
In many cases, avoiding mistakes is one of the best benefits of hiring a property manager! Whether you’re a new or seasoned investor, costly mistakes can keep you from generating the income and long-term success you need from rental properties.
Expert Tenant Management
One of the most complex parts of being a good landlord is managing renters. While every property owner hopes to place quality renters that pay the rent on time every month, sometimes bad renters get through a screening process.
Dealing with difficult tenants can be one of the most frustrating aspects of owning rental properties. Avoiding evictions is the best way to improve returns. However, in some cases, it might be necessary to do so. With a property manager, investors have a resource to manage troublesome renters and follow the legal eviction process.
Better Tenant Selection and Lower Vacancy Rates
To help prevent evictions, a property management company is indispensable when screening tenants. Since tenants are your source of income as a rental property owner, having high-quality tenants that pay the rent every month is paramount.
A property manager will help you create a comprehensive screening process to ensure only the best renters move into your rentals. With well-defined criteria and a thorough background check that includes credit and rental history, property managers help owners avoid professional tenants and other potentially bad residents that won’t follow the rules or pay rent on time (if at all).
When property owners experience better renters, they also enjoy lower vacancy rates! With the experience of a rental manager, investors see consistent rental income and less time without a resident paying the rent.
Property Managers Follow the Law
From understanding and complying with Fair Housing laws during the tenant screening process to knowing how to handle reasonable accommodation requests, property managers keep owners compliant with landlord-tenant laws.
Renters with a disability may require special accommodations to live comfortably in a rental property. These requests can include adding a wheelchair ramp to the building, designating a specific parking space near their apartment, adding safety rails in the bathroom, or allowing an emotional support animal. While property owners must accommodate these requests in most cases, not all requests are reasonable or necessary.
Professional property managers have dealt with a variety of unique requirements and requests. As a result, they know precisely how to handle accommodations to keep your properties compliant while addressing tenant needs according to the law.
Rental Property Maintenance and Inspections
Among the benefits of a property management company is its professional maintenance services! From seasonal maintenance to property inspections, keeping an eye on rental units throughout the year keeps them in excellent condition. Well-maintained properties help improve property values and keep tenants happy!
Seasonal preventive maintenance is a crucial duty for every property owner. By keeping up with routine maintenance, property owners can prevent costly repairs that can impact their bottom lines.
In addition to routine repairs, having a property management company means you have someone to respond to maintenance requests—any time of day or night! If those middle-of-the-night emergency calls from tenants have been something you dread, a property manager takes those calls and handles after-hours repairs for you! The best property management companies have a vetted list of contractors who can handle routine maintenance and emergencies without delay. Having these “on-call” resources helps investors reduce costs and keep properties in top condition.
Inspections Help Prevent Costly Repairs
Conducting regular property inspections helps investors keep up with routine maintenance or spot potential problems before they become costly repairs. However, many property owners don’t have time to visit rental properties during the lease term, especially if they invest in Salt Lake City from other cities or states.
A property manager has the time, experience, and an inspection checklist to review properties before a new lease, mid-lease, and after a lease ends. With this level of support, a property owner never has to worry about how tenants behave in a property or the condition of a home.
Dealing with frequent tenant turnover or long vacancies can reduce the revenue from your rental properties. However, sometimes the struggle to find and keep good tenants requires better rental property marketing strategies.
There are many benefits to having a property management company market your rental property. One of them is creating better listings for your property, including placing high-quality listing photos with each available property.
Property managers also know how to target your ideal renters, set the ideal rental rate, and create compelling listings that attract better residents. So if it’s time for shorter vacancy cycles and better renewal rates, a property management company can help!
Pricing Rental Units
Setting the ideal rental price might seem like a simple task, but the wrong price can leave you without the tenants you need to generate monthly income. Setting the price too low (in an effort to find tenants faster) can also leave you without the revenue you need to cover expenses and generate enough cash flow.
Knowing how to set the right price for your rental property is one of the most critical aspects of operating successful rentals and meeting your financial goals! A property management expert can apply experience and rental market analysis to ensure accurate pricing for each property in your portfolio. Staying competitive with market trends helps property owners create demand for their rental units, shorten vacancy cycles, and keep rental payments coming in the door every month.
Maximize Return on Investment
You might be generating some income from a rental property, but is it enough? Is your cash flow meeting projections?
Many property owners only consider the cost of hiring a property manager as a good reason to self-manage rental units. Paying for a service you can do yourself helps our bottom line, right? However, having a property manager is often a good investment that helps investors boost returns!
In addition to expert strategies that boost occupancy rates and help you avoid legal issues, property managers help improve on-time rent collection to maintain consistent cash flow. Plus, the right property manager helps you maximize tax deductions for each rental property in your portfolio. From keeping track of expenses throughout the year to working with your accountant to ensure you don’t miss any critical deductions, investors see a better return on investment when hiring a property management firm. In fact, property management fees are tax-deductible!
Selecting a Property Management Company
So, what do property owners need in the best property management company Salt Lake City offers? Choosing a quality property manager can be a challenging decision to make if you’re not sure what to look for!
One thing you should look for in a property manager is the right experience. The best property managers have extensive local history and experience in Salt Lake City and surrounding markets. If you invest here as a long-distance property owner, local expertise is critical to your success in this area!
When analyzing the best property manager for your needs, check reviews and references and look for other property owners (and tenants) that mention good experiences with a company. See what renters and industry peers have to say about them, how they work, and the success they bring to real estate portfolios.